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TITLE 26-INTERNAL REVENUE CODE taxable years shall be based on such revised es- timate. (b) Special rules (1) Leases In the case of a lease, the deduction under this section shall be equitably apportioned be- tween the lessor and lessee. (2) Life tenant and remainderman In the case of property held by one person for life with remainder to another person, the deduction under this section shall be comput- ed as if the life tenant were the absolute owner of the property and shall be allowed to the life tenant. (3) Property held in trust In the case of property held in trust, the de- duction under this section shall be appor- tioned between the income beneficiaries and the trustee in accordance with the pertinent provisions of the instrument creating the trust, or, in the absence of such provisions, on the basis of the trust income allocable to each. (4) Prop!rty held by estate In the case of an estate, the deduction under this section shall be apportioned be- tween the estate and the heirs, legatees, and devisees on the basis of the income of the estate allocable to each. (c) Cross reference For other rules applicable to depreciation of improve- ments, see section 167. (Aug. 16, 1954, ch. 736, 68A Stat. 207; Sept. 2, 1958, Pub. L. 85-866, title I, § 35, 72 Stat. 1632; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1906(b)(13)(A), 90 Stat. 1834.) AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455 struck out "or his delegate" following "Secretary". 1958-Subsec. (d)(4). Pub. L. 85-866 substituted "de. visees" for "devises". EFnivE DATE o0 1958 AmlENDMrNr Amendment of subsec. (b)(4) by Pub. L. 85-866 appli- cable to taxable years beginning after Dec. 31, 1953, and ending after Aug. 16, 1954, see section l(c) of Pub. L. 85-866, set out as an Effective Date of 1958 Amend- ment note under section 165 of this title. SEC'TION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 57, 62, 163, 174, 613, 613A, 616, 617, 642, 691, 703, 705, 804, 822, 901, 1082, 4940 of this title. § 612. Basis for cost depletion Except as otherwise provided in this sub- chapter, the basis on which depletion is to be allowed in respect of any property shall be the adjusted basis provided in section 1011 for the purpose of determining the gain upon the sale or other disposition of such property. (Aug. 16, 1954, ch. 736, 68A Stat. 208.) CRoss REFERENcEs Adjusted basis of mine or deposit, see section 616 of this title. Adjustments to basis in respect of depletion, see sec- tion 1016 of this title. Basis for depreciation, see section 167 of this title. Basis of property as cost, see section 1012 of this title. § 613. Percentage depletion (a) General rule In the case of the mines, wells, and other nat- ural deposits listed in subsection (b), the allowance for depletion under section 611 shall be the percenta ge, specified in subsection (b), of the gross income from the property excluding from such gross income an amount equal to any rents or royalties paid or incurred by the tax- payer in respect of the property. Such allowance shall not exceed 50 percent of the taxpayer's taxable income from the property (computed without allowance for depletion). For purposes of the preceding sentence, the al- lowable deductions taken into account with re- spect to expenses of mining in computing the taxabie income from the property shall be de- creased by an amount equal to so much of any gain which (1) is treated under section 1245 (re- lating to gain from disposition of certain depre- ciable property) as ordinary income, and (2) is properly allocable to the property. In no case shall the allowance for depletion under section 611 be less than it would be if computed with- out reference to this section. (b) Percentage depletion rates The mines, wells, and other natural deposits, and the percentages, referred to in subsection (a) are as follows: (1) 22 percent (A) sulphur and uranium; and (B) if from deposits in the United States- anorthosite, clay, laterite, and nephelite syenite (to the extent that alumina and alu- minum compounds are extracted there- from), asbestos, bauxite, celestite, chromite, corundum, fluorspar, graphite, ilmenite, kyanite, mica, olivine, quartz crystals (radio grade), rutile, block steatite talc, and zircon, and ores of the following metals: antimony, beryllium, bismuth, cadmium, cobalt, co- lumbium, lead, lithium, manganese, mer- cury, molybdenum, nickel, platinum and platinum group metals, tantalum, thorium, tin, titanium, tungsten, vanadium, and zinc. (2) 15 percent If from deposits in the United States- (A) gold, silver, copper, and iron ore, and (B) oil shale (except shale described in paragraph (5)). (3) 14 percent (A) metal mines (if paragraph (1)(B) or (2)(A) does not apply), rock asphalt, and vermiculite; and (B) if paragraph (1)(B), (5), or (6)(B) does not apply, ball clay, bentonite, china clay, sagger clay, and clay used or sold for use for purposes dependent on its refractory prop- erties. (4) 10 percent Asbestos (if paragraph (1)(B) does not apply), brucite, coal, lignite, perlite, sodium chloride, and wollastonite. (5) 7V percent Clay and shale used or sold for use in the manufacture of sewer pipe or brick, and clay, § 612 Page 440