Changes

===Leasehold costs===

===Leasehold costs===

''Leasehold costs'' are expenditures associated with the acquisition of an economic interest in a natural resource that are deemed to benefit future tax periods. Accordingly, leasehold costs are capitalized, and the tax free return of that expenditure are recovered through the ''allowable depletion calculation''. The depletion deduction was created by Congress to give a means of returning the invested capital to the investor tax free as the resource is depleted. There are two methods of calculating depletion: cost depletion and percentage depletion. (See “[[Determining owners of oil and gas interests]]" and "[[Methods of conveyance]]” more information on lease ownership costs and revenue.)

''Leasehold costs'' are expenditures associated with the acquisition of an economic interest in a natural resource that are deemed to benefit future tax periods. Accordingly, leasehold costs are capitalized, and the tax free return of that expenditure are recovered through the ''allowable depletion calculation''. The depletion deduction was created by Congress to give a means of returning the invested capital to the investor tax free as the resource is depleted. There are two methods of calculating depletion: cost depletion and percentage depletion. (See “[[Determining owners of oil and gas interests]]" and "[[Methods of conveyance]]” for more information on lease ownership costs and revenue.)

===Lease bonus===

===Lease bonus===