Depletion is an accounting and tax concept used most often in mining, timber, petroleum, or other similar industries. Depletion is similar to depreciation in that it is a cost recovery system for accounting and tax reporting. "The depletion deduction" allows an owner or operator to account for the reduction of a product's reserves.
You may be able to deduct interest expenses for a property you used for business purposes, even if you have stopped using the property for business activities because you are no longer in business. For more information, see Income Tax Folio S3-F6-C1, Interest Deductibility and Related Issues .
Business expenses are the costs of carrying on a trade or business, and they are usually deductible if the business is operated to make a profit. While TaxAct® does not support the calculation for depletion, such as for Line 12 of Schedule C, you are able to calculate the amount and enter it in that field on your return.