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stevebrite2
New Member

How do I calculate the depletion allowance on Oil royalties earned in 2018 as a result of mineral rights that I own?

 
1 Best answer

Accepted Solutions
KittyM
Level 2

How do I calculate the depletion allowance on Oil royalties earned in 2018 as a result of mineral rights that I own?

The depletion allowance is 15% and is calculated on the followup page Enter Your Depletion Information in TurboTax when you enter the oil royalty information.

For example, if you have $1,000 in oil royalties, the depletion allowance is 1,000 x .15 (15%) or $150.  You would enter that amount in the box if TurboTax does not calculate it for you.

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7 Replies
KittyM
Level 2

How do I calculate the depletion allowance on Oil royalties earned in 2018 as a result of mineral rights that I own?

The depletion allowance is 15% and is calculated on the followup page Enter Your Depletion Information in TurboTax when you enter the oil royalty information.

For example, if you have $1,000 in oil royalties, the depletion allowance is 1,000 x .15 (15%) or $150.  You would enter that amount in the box if TurboTax does not calculate it for you.

View solution in original post

aajaxcomm
Level 1

How do I calculate the depletion allowance on Oil royalties earned in 2018 as a result of mineral rights that I own?

TT does not even ask me for depletion info after entering royalties.

KrisD15
Employee Tax Expert

How do I calculate the depletion allowance on Oil royalties earned in 2018 as a result of mineral rights that I own?

Enter the information under

Federal

Deductions & Credits

Rentals, Royalties, and farms

Rental Properties and Royalties 

     Yes

     Type of property - Royalty

Continue through the  interview to the Depletion Screen.

 

 

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JDL1
Returning Member

How do I calculate the depletion allowance on Oil royalties earned in 2018 as a result of mineral rights that I own?

There is no Rental, Royalties, and farms section under Federal Deductions & Credits.  Why wouldn't it ask for this information when you enter the royalties under the Wages & Income section.  I'm just sick, apparently I have missed this deduction since 2014 costing me hundreds of dollars!  What good is TurboTax when it misses a major deduction like this?

ToddL99
Expert Alumni

How do I calculate the depletion allowance on Oil royalties earned in 2018 as a result of mineral rights that I own?

Depletion allowances (and calculations) are addressed in the Rental Properties and Royalties interview of TurboTax Self-employed (and Home & Business), under the Business  >  Business Income and Expense section.

 

JDL1
Returning Member

How do I calculate the depletion allowance on Oil royalties earned in 2018 as a result of mineral rights that I own?

I use the Deluxe version which doesn't have that section.  When the Deluxe version specifically accepts the 1099 entry for oil royalties it should automatically enter the 15% deduction in the schedule E which is included in the Deluxe version.  At the very least, it should advise you that the deduction exist and tell you it is in the Home and Business version.  I have lost all confidence in TurboTax at this point and will not be using it again.

brkirchh1
Level 1

How do I calculate the depletion allowance on Oil royalties earned in 2018 as a result of mineral rights that I own?

I have also missed out because of lack of this information until now!  I even purchase the on up from deluxe just to help and it still did not cover this.   Shame on you Turbo Tax.

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