Primary Market
Which type of limited partnership investment allows investors to claim depletion deductions?
Depletion = natural resources (oil, gas, minerals). Depreciation = buildings, equipment.
Complete Analysis & Legal Rationale
Depletion is a tax deduction unique to natural resources, such as oil, gas, and minerals. Oil and gas limited partnerships pass through depletion deductions to investors. Real estate uses depreciation, not depletion.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Real estate partnerships use depreciation, not depletion.
Equipment leasing uses depreciation on the equipment.
Matches the verified teaching point in the explanation.
Hedge funds do not typically have natural resource assets subject to depletion.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.