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Automatic Depreciation of oil royalties income

Turbo Tax is not automatically calculating depreciation of oil royalties income.
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3 Replies
DanO
New Member

Automatic Depreciation of oil royalties income

The oil depletion is set for 15% of income and should come up automatically when going through Property Profile.

  • Sign into TurboTax
  • Click Take me to my return
  • Click on Federal in left column
  • Scroll down to Rental Properties and Royalties (Sch E) and click Edit/Add
  • Next screen Yes - Next Screen answer and Continue
  • Rental and Royalty Summary - Edit your royalty
  • Click on Property Profile Update
  • Enter data for royalty and Continue
  • Next screen Yes or No and Continue
  • Next screen Click on Oil and Gas Royalty Income and Continue
  • Enter you Royalty Income and taxes paid if any and Continue
  • Next screen should be populated with the depletion amount

Automatic Depreciation of oil royalties income

Is this TurboTax Deluxe that computes oil and gas depletion automatically?  Didn't work for me.

Carl
Level 15

Automatic Depreciation of oil royalties income

Royalty income property is **NOT** depreciated. You take depletion on royalty property, not depreciation. This is all covered in IRS Pub 535.

 

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