Apparently I'm not completely done with this. So going back to my example above, "Production Taxes" = $50 and "Other Revenue Deductions" = $20. If 1099-MISC Royalties = $500 so "Net Income" = $430. In Oklahoma State Filing for Schedules A-H (Schedule 511-NR-B), which of the following option is correct:
Option A
- Line 12 "Rental real estate, royalties, partnerships, etc" = $500
- Line 8 "Additional depletion" =
- $500 x 0.85 (15% depletion) = $425
- $500 x 0.78 (additional 7% depletion from Oklahoma for a total of 22%) = $390
- $425 - $390 = $35
Option B
- Line 12 "Rental real estate, royalties, partnerships, etc" = $430
- Line 8 "Additional depletion" =
- $430 x 0.85 (15% depletion) = $365.5 ($366)
- $430 x 0.78 (additional 7% depletion from Oklahoma for a total of 22%) = $335.40 ($335)
- $366 - $335 = $31
Thank you,
Tulane
