Intangible drilling costs are usually reported on a K-1 and then flow to Schedule E, p.2. You can choose to deduct the full amount in the current year or amortize them.
Enter the information as if you received a K-1 from a partnership -- the joint venture. Report the intangible drilling costs in Box 13 (Other Deductions) with Code J.
- Click on Federal Taxes > Wages & Income [In TT Self-Employed: Personal > Personal Income > I'll choose what I work on].
- Under Business Investment and Estate/Trust Income, click on the box next to Schedule K-1.
- On the Tell Us About Your Schedules K-1 screen. Click on the Start/Update box next to partnership.
- If you have already entered K-1 information, you will see a Summary screen. Click Add Another K-1 to enter your information (or click on Edit to continue with the existing form entry).
- If you haven't started enter K-1 information, continue through the screens, entering the requested information.
- On the screen, Check Boxes That Have an Amount be sure to mark Box 13 and click Continue.
