Depreciation for Mines in the Light of Current Legislation

DEPRECIATION allowances have become firmly rooted in our income tax structure both by legislation and by court decisions. Secretary of the Treasury Morgenthau has recently stated before the Ways and Means Committee of the House: A taxpayer who did not provide for depreciation of assets used in his business could not long remain in business and the income tax should be levied on the assumption that he will provide for such depreciation. The 1934 Revenue Act has now been enacted, the depreciation provisions of the 1932 Revenue Act having been carried forward without change. However, there has arisen, in connection with the preparation of this new Revenue Act, a determination by the Treasury Department to make certain changes in the future administration of the depreciation allowances that will affect all corporations, and mining companies in particular.