Magnetic holes are sudden changes in the magnetic field intensity \B\ from
typical interplanetary values (similar to 10 nT) to less than 1 nT in a mat
ter of seconds. The intensity then recovers within seconds or up to similar
to 30 min later. These \B\ dropouts can be seen daily. Less often observed
, but even more dramatic, are magnetic field depletions that last for up to
several hours. We use selected periods of magnetic flux dropouts observed
with various sensors of the Advanced Composition Explorer (ACE), which has
a unique combination of magnetic field, plasma, and composition experiments
, to establish the origin of these peculiar objects. We conclude that these
microscale magnetic holes very likely develop in the heliosphere and are n
ot of direct solar origin. We also suggest a possible formation mechanism a
ssociated with magnetic reconnection close to the Sun.