Don't deduct depletion for oil and gas properties on line 15 of the Schedule K.
Each shareholder figures his own depletion on oil and gas properties. See the instructions for Schedule K-1, box 17, code R, for the information on oil and gas depletion that must be supplied to the shareholders by the corporation.
The S corporation will report the amounts for each shareholder on Schedule K-1 line 17 code R for each shareholder
For additional information refer to
IRS Instructions for Form 1120S
