Intangible Drilling Cost Current Year Calculation

Forum|Forum|1 year ago
October 12, 2024
2 replies
7 views

Current year amortization amount error prevents me from e-filing. Seems to be an error in your software. If I have a 5 year amortization of $60k that corresponds to an IDC current year deduction of $12k. Your software check says the Amortization Amount must be $12k in the error check which will not let me e-file.

Steve_1Author

Level 2

Error Corrected! User entered current year deduction on IDC K-1 question instead of full amortization amount. E-filed correctly without issue.

Chris-was-here

Level 2

Yep, that’s a known TurboTax bug with IDC amortization. If you elect 5-year amortization on $60k, your current year deduction should be $12k, but the software is mis-matching the fields and blocking e-file.
Two options:
1. Switch to 100% expensing in year one (if you qualify and want the full deduction now).
2. Stay with 5-year amortization, but you’ll need to override in desktop Forms mode or print/mail the return—e-file won’t pass the check until Intuit patches it.

Annoying, but it’s a software issue, not your math.

Fieldvest has a simple savings calculator that shows how much you could lower your taxes with an oil & gas investment.