Thank you so much for your timely response. I was totally stuck as to how to enter non-deductible Oil & Gas Depletion in Turbo Tax. I must say that Turbo Tas Business is not very clear on how to enter Oil & Gas Royalties Income. (It gives me to enter Royalties but then treats it as Portfolio Income). How do I go back to the Intervew and edit the Income so that it registers as Oil & Gas Royalties. And you said earlier it also computes the 15% Depletion automatically. I don't see how to get there. I want to enter the Oil & Gas Royalties as Depletable Assets rather than Other Assets.
Also, when I go to Balance Sheet Reconciliation It DOES NOT give me a choice in the Book and Tax Difference to pick Disallowed Oil & Gas Depletion. It downloads my Quickbooks file wherein I have added Oil& Gas Depletion as a separate Expense item after calculating the 15% amoiunt. Now I want to show that for Rax purposes that Deduction on Quickbooks should be disallowed. How to do all this? Or just because I have entered the Oil&Gas Depletion in Oine 17 R the Income flow through to my Personal Tax Return will be properly done?
THe Tax Return 1120-S is still showing Book Income as the Tax Return Income although I added Line 17 Code R disallowed depletion amount. The Tax Return Net Income should have increased by this Depletion Amount but somehow I don't seem to be able to connect it. Is there a Form M-1 and M-2 that does it?
BTW, I have tried several times to go back to the Interview to see if I can change the Income category as Oil&Gas Income but have not been able to do so.
Thank you , once again! You are a life-saver!
