Turbo Tax Business (Parnership) , where do you enter mineral depleation for oil royalities? I entered the royality income but program doesn't ask for anything else.

Forum|Forum|6 years ago
March 29, 2020
2 replies
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Best answer by DavidS127

The partnership does not deduct the depletion deduction. The royalty income goes to the partner Schedule K-1s, and the depletion deduction is taken when the partners enter that K-1 royalty in their individual tax returns. See the instructions for Form 1065 at this link.

See the instructions for Schedule K-1, box 20, Depletion information oil and gas (code T) at this link for the information on oil and gas depletion that must be supplied to the partners by the partnership. You can enter the code T and depletion information in Forms mode (icon at top right in blue bar) of TurboTax Business. Find the K-1 worksheet for that partner, scroll down to box 20, and enter the required information.

DavidS127Answer

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DOVERAuthor

Level 2

Thanks for the very helpful reply. I would wish that turbo tax would automatically put in the Box 20 T amount vs manually having to input it. If I wasn’t aware of the depletion being allowed, it would have been missed.