How to report passive activity loss carryover on oil royalties (not real estate)?
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New Member

How to report passive activity loss carryover on oil royalties (not real estate)?

 
6 Replies
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Level 15

How to report passive activity loss carryover on oil royalties (not real estate)?

Royalty income generally doesn't have losses, since there are no assets commonly associated with a royalty payment. So what specific loss or losses do you have here? With those details, we can better assist and direct you.
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New Member

How to report passive activity loss carryover on oil royalties (not real estate)?

The accountant who did my tax return last year gave me a list of carryover values to include in 2016.  I have six items of depletion from six oil royalties.  They come from Schedule E page 1.  Where do I put them in 2016?  The specific dollar amounts show as an AMT depletion adjustment on a non-IRS schedule.
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Level 15

How to report passive activity loss carryover on oil royalties (not real estate)?

Without knowing what the "6 items" are, we still can't help. There as to be a physical name for them under the Asset Description column of the 4562 titled "Amortization & Depreciation Report". (You want the report with that exact title, that prints in landscape format.)
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New Member

How to report passive activity loss carryover on oil royalties (not real estate)?

There is no 4562. I do have a "Schedule of Mineral Interest Properties-Alternative Minimum Tax" form.  The property descriptions are things like "Occidental Permian" and "Texland Petroleum" so I don't think that helps you.  The carryover numbers are in a column titles "(4) AMT Depletion Adjustment".  I think there must be some place to enter them where they carry over to 6251 part 1 somehow.
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Level 15

How to report passive activity loss carryover on oil royalties (not real estate)?

@TaxGuyBill I have no idea what he's talking about here with these carry overs on royalty income. Maybe you do? All I know is that Depletion Adjustments have nothing to do with carry over losses. It's a devaluation of the value of the royalty right, which I "guess" would be a kind of depreciation?
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Level 9

How to report passive activity loss carryover on oil royalties (not real estate)?

Your original question is about Passive Loss Carryovers,so I'm going to address that.

I don't know how to do it in the Step by Step interview (the Online version only has that method) for Oil/Gas, so you may need to switch to the CD/downloaded version so you can access the forms and worksheets directly.  Then you can go directly to the "Forms", go to the "Schedule E Wks" and scroll WAY down to enter the Passive Loss Carryovers, including AMT carryovers.

However, the rules for Oil/Gas activities can be quite complex, and the interaction of depletion and AMT is just one of those complexities.  I don't know this, but I suspect that TurboTax falls short on the matter, so you may consider continuing going to a tax professional that is EXPERIENCED with Oil/Gas activities.
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