Can TurboTax deluxe do depletion on gas royalties? How do I do it?

[PatriciaV]

Yes, TurboTax calculates percentage depletion on gas royalties for you, based on your income for the Royalty Property. The depletion rate for gas properties is 15% of gross income.

Royalty Income and Deductions are reported on Schedule E (Rental Properties & Royalties), even if you do not own the property.

To easily find this area of TurboTax, use the Search box at the top right corner of the TurboTax header and enter "royalties". Click on the "jump to royalties" link to be taken directly to this area of the program. 

Follow the interview process to enter your Royalty Property, along with income reported on Form 1099-MISC and any property taxes you paid. "Other deductions" reported on Form 1099-MISC (example: production taxes), are entered under "More Expenses" in the extended interview. See the screenshot below for an example of a 1099-MISC entry for gas royalties.

If TurboTax prompts you to enter an address for the property, use the actual address if you know it (look on the property tax bill if you have one). Or use your own address. The IRS instructions say address lines 1 and 2 should be left blank, but sometimes the program won't let you continue without an address.

[kput123]

Where does the depletion show up, on schedule E?

[Critter]

Line 18 ... where is says depreciation or depletion ...  https://www.irs.gov/pub/irs-pdf/f1040se.pdf

[kput123]

Got it.....thanks

mine was blank so I'll have to figure out what I did wrong

[gmalin82]

After filling in all the information for my gas royalties my depletion does not show up on line 18. What am I doing wrong?

[DaveF1006]

Make sure you enter this as a royalty. if you are using Turbo Tax Software, you can make that entry manually on line 18 of the Schedule E Worksheet without repercussions.