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posted Jun 30, 2024 1:13:00 PM

Amortize intangible drilling costs

How do I continue to amortize my intangible drilling costs in Turbo Tax after I sold the oil well?

 

I did not receive a K-1 for 2023 since I sold teh well in 2022.

 

thanks,

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1 Replies
Level 15
Jun 30, 2024 6:26:23 PM

amortization stops with the sale so tax reporting for the remaining IDC should have been with your 2022 return

 

the k-1 you received and supplemental information should have provided guidance on the handling of the unamortized IDC

 

 

see this thread especially section 6

https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Energy-and-Resources/dttl-er-US-oilandgas-guide.pdf#:~:text=Even%20if%20IDC%20is%20initially%20capitalized%2C%20taxpayers%20can,of%20a%20non-productive%20well%20as%20%E2%80%9Cdry%20hole%E2%80%9D%20costs.