IRS T.D.: Comments Requested on Disposition of Natural Resource Property (IRC §1254)

Comments requested on T.D. 8586 that prescribes rules for determining the tax treatment of gain from the disposition of natural resource recapture property in accordance with tax code Section 1254. Under Section 1254, gain is treated as ordinary income in an amount equal to the intangible drilling and development costs and depletion deductions taken with respect to the property. Comments are due on or before May 18, 2020. [IRS Comment Request, 85 Fed. Reg. __ (Mar. 17, 2020)]

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