Yes, TurboTax Deluxe can handle depletion for oil royalties. It calculates percentage depletion based on your income from the royalty property. The depletion rate for oil properties is typically 15% of the gross income
To enter this information in TurboTax Deluxe:
- Open or continue your return. For the link in step 2 to work, you must be signed in to TurboTax.
- Navigate to the 1099-MISC section:
- TurboTax Online/Mobile: Go to 1099-MISC.
- TurboTax Desktop: Search for 1099-MISC and select the Jump to link.
- When you enter your 1099-MISC, enter the income in Box 2 - Royalties. On the following screen, choose the source of your royalty income:
- Royalty investment income from a natural resource, intellectual property or other investment portfolio (no operating interest) – This includes natural resources extracted from your property by a third party who leases your property, as well as royalties from intellectual property that you didn't create yourself. This gets reported on Schedule E.
- .TurboTax automatically calculates percentage depletion for a royalty property with income entered on Schedule E under Rental Properties and Royalties. See the original post here.
