Series 7 - General Securities Representative Exam

Preview Mode
Start Training Session

Which of the following is a tax deduction for natural resource partnerships (DPPs) to take a deduction of decreasing supply of the resource?

Depreciation
A
Depletion
B
Tangible Drilling Costs
C
Intangible Drilling Costs
D
Training

Explanations

Depletion. The resource is being depleted. Remember this for the exam. It is NOT depreciation; which allows for tax deduction over the life of an asset.

Pricing