Deductions & credits

It depends on the amount of income your Foreign Tax Credit was based from. if you receive a supplemental statement from your K1 trustee, it should list that somewhere.  Without knowing this, I can't say for sure what income was reported to the foreign government and how the foreign taxes were assessed. Here is how you will enter the information.

1. Assuming you received a 1099 MISC for your royalty, go to federal>wages and income>
2. Rental properties and Royalties>rental properties and Royalties
3. Answer all of the questions regarding the royalty.  Be sure to indicate if this is a oil or gas royalty when it asks for this information.
4. After entering the income from the 1099 MISC, there is a page that will ask what the depletion allowance is. Here you will record $7500. Here is what that page looks like.