Tangible Drilling Costs are not typically reported as a line item on Schedule K-1. Instead, the partnership calculates the depreciation (usually via MACRS over 7 years) and includes that deduction in the Ordinary Business Income (Loss) reported in Schedule K-1 Box 1. You may wish to contact the company that prepared the company tax return to confirm the TDC depreciation was included in Box 1 and inquire what method was used for this depreciation.
If, however, TDC depreciation was NOT included in Box 1 and the K-1 does not report this expense, you would need to set up a Schedule C business in TurboTax to track the TDC as a business asset, which then could be depreciated using whatever method you choose. Form 4562 is linked to the Asset Worksheets of your business and cannot be manually completed.
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