oil depletion

[dmo4]

How to enter 15% oil depletion allowance in 2023 turbotax delux?

[DawnC]

The allowance will be entered when you enter your expenses for the royalty property.   These instructions reference rental property, but the instructions are the same for royalty property.

The depletion allowance is calculated as part of the interview when you are entering your royalty information.  If you are receiving oil royalties, TurboTax will automatically calculate the depletion allowance.

For oil and gas royalty owners, percentage depletion is calculated using a rate of 15% of the gross income based on your average daily production of crude oil or natural gas, up to your depletable oil or natural gas quantity.   After you enter your income, you will come to the depletion screen, and you can edit the amount if needed.