DavidS127
Expert Alumni

Deductions & credits

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 returnsSee 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 li... 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.

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