Exploration Costs

About Exploration Costs:

for solid minerals, the costs of prospecting and exploration to discover mineral deposits. In general, exploration costs are deductible as they are paid or incurred, or they may be capitalized and amortized. If deducted, these costs are subject to recapture when the mine becomes productive. In the oil and gas industry, exploration costs (e.g., geological and geophysical costs) are capitalized as part of the leasehold costs and deducted through depletion. Former IRC (check if this IRC provision is current here) §61.