TurboTax Deluxe 2023 Depletion for Oil & Gas Royalties are calculated but not transferred to Schedule E

[ptadolini]

I am using TurboTax Deluxe 2023.  I have royalties from oil and gas interests that are reported on a Schedule K-1 for a limited partnership.  I go through and TurboTax figures the 15% depletion in the interview but the depletion expense is not transferred to the Schedule E.

I can go in and manually add it on the worksheet and get it to appear on my Schedule E, but it seems that TurboTax automatically should record that on the schedule.

I am confused on what I am doing wrong.  From everything I have read, I should be able to use depletion as an expense on my Schedule E. 

[John T1]

I'm thinking the same as you.   Don't know why TT does not enter the Depletion amount on Schedule E.   Actually, on the background Form1065 K-1  that TT creates when you enter the K-1 data, it has a note in the Box 20 Code T area (where it puts the depletion data) that says not to enter the Depletion expenses for Oil & Gas Royalties "here" but to "enter directly on the Schedule E worksheet."  So I also manually entered it in Sched E Line 18-b (Depletion), as you did.   That gave the result I needed (reducing the Royalty income by the Depletion expense amount, but I was still left with negative Loss entries, as it ignored the Royalty Income from Line 7 of the K-1 and entered a $0 as Income where it calculated this "Loss."    Thus you end up with a Form 8582 showing a Disallowed Loss.   Also the Loss is shown on the TT created K-1 as a passive loss  suspended for current year.   All these entries about Losses don't seem valid, since the Depletion is simply  an expense that decreases the Royalty income.   No  "Loss" occurs.   I sent Intuit a letter about this.