I did use percentage depletion to calculate taxes on past royalty payments. So then, I just raise my cost basis number up to exactly match my allowable depletion amount (which is the total of all of the depletion I have taken on royalty payments over the years), so that the net effect on the sales price is zero (Line 20 will equal Line 24; Line 21 will equal Line 22; Line 23 will equal Zero)? Did I understand your answer correctly?
And thanks for your previous quick response!
