Unclaimed royalty from oil & gas minerals

[martyshurtleff]

Can I take a 15% depletion deduction for minerals reported on 1099-MISC other? The mineral production was produced from 1998 to 2005 and awarded to us in 2022. The 1099-MISC has the total in box 3 Other. we also have the document showing what the payment was for Royalties produced and the property location.

[ErnieS0]

Yes. You can claim depletion.

To make it easier, enter your Royalty income in Box 2 if you are entering it as a 1099-MISC in TurboTax. Entering it in Box 3 will create self-employment income and put you in the wrong place.

Or skip entering the 1099-MISC and enter the income directly into the rentals and royalties section.

1. Type royalties in Search (magnifying glass) in the upper right
2. Tap Jump to royalties
3. On “What are you here to report” tap Royalty, then Continue
4. Continue until you see a screen to enter your 1099-MISC
5. Later you will see a screen to add expenses. Select depletion, then enter depletion

[martyshurtleff]

Thanks ErnieS0 .

I will use your methods to enter this in Turbo Tax Premier.