DianeW777
Expert Alumni

Investors & landlords

You need to do two entries for your rental property.  The oil & gas royalties need to be added as a separate property even though it's the same property.  Since rental and royalty income is handled differently for tax purposes, this will allow you to complete your return.

 

Don't forget to use your allowable depletion for your royalty income.  For oil and gas royalty owners, percentage depletion is calculated using a rate of 15% of the gross income based on your average daily production of crude oil or natural gas, up to your depletable oil or natural gas quantity.

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