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I take a 15% federal depletion deduction against my PA natural gas royalty. TurboTax improperly, I believe, carries this deduction over to my PA return. Glitch?

Pennsylvania does not permit percentage depletion.
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3 Replies

I take a 15% federal depletion deduction against my PA natural gas royalty. TurboTax improperly, I believe, carries this deduction over to my PA return. Glitch?

While I don't have the TT software for PA,  you will most likely need to make an adjustment on PA Schedule E for the disallowed depletion.

 

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.

I take a 15% federal depletion deduction against my PA natural gas royalty. TurboTax improperly, I believe, carries this deduction over to my PA return. Glitch?

Right.  I made the Schedule E adjustment, but needed to delete the 15% depletion amount from the federal entry in order for the Schedule E deletion to take.  So I will need to remember to put the 15% federal amount back after I print the Pennsylvania return.

I take a 15% federal depletion deduction against my PA natural gas royalty. TurboTax improperly, I believe, carries this deduction over to my PA return. Glitch?

All set.  I note that the TurboTax PA return instructions prompt me to delete the 15% federal depletion amount.  

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