Water Depletion ROI Calculator

Estimate your potential tax savings from a water depletion deduction using our ROI calculator. Based on your property's purchase price or basis, this tool helps agricultural landowners understand the financial impact of claiming groundwater depletion as a depreciable asset under IRS Section 611.

Water Depletion Deduction
ROI Calculator

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This reflects your cost basis in the land. If the land was inherited, this would typically be its fair market value at the time of inheritance.

This represents the estimated percentage of your land's purchase price that is attributable to the value of its water rights.

This represents the estimated percentage of water depletion that has occurred since the land was purchased.

Your Estimated Financial Impact:

Total Water Depletion Deduction:
Gross Service Cost (7.5% of Deduction):
Less: Tax Savings from Expensing Service Cost:
Net Out-of-Pocket Cost (after tax benefits on service):
Total Cash Benefit from Deduction:
Total Net Financial Benefit:
Return on Investment (ROI):

Disclaimer: This calculator provides an estimation for illustrative purposes only. Actual results may vary significantly based on individual tax situations, deduction eligibility, and other factors. No specific financial outcome or tax saving is guaranteed. Please consult with a qualified tax professional or financial advisor for personalized advice.