use schedule E property type 6. Depletion has to be computed by you. Usually, you get a packet from the royalty operator sometime in February which gives you all the details.
here are the general rules.
you get to take the larger of cost depletion or % depletion
cost = unrecoverable depletable costs/ estimated recoverable reserves at the beginning of the year X units sold in 2024
% =15% of gross receipts
must be an independent producer or royalty owner
limited to the lesser of net royalty income before this deduction or 65% of taxable income before this deduction
