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Form 4797 Sale of Business Property. I disposed of Working Interest in Oil & Gas Wells. Is the 15% Depletion taken treated as the "Depreciation Allowed"?
I purchased Oil & Gas Working Interests in 2009.
In 2017, I signed over a Release of Working Interest Ownership & Joint Operating Agreement Obligations for the Oil & Gas Leases.
This “Sale” was for $0.00.
I filed a Schedule C and paid Self-Employment taxes each year including Production Revenue and Expenses for State Severance Tax, Lease Operating Expenses, and 15%
Depletion.
On Form 4787, Is the "Depreciation Allowed or Allowable since Acquisition" equal to only the total of 15% Depletion taken?
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June 6, 2019
10:01 AM