Oil & Gas Royalites: Other Deductions and Productions Taxes deductions

[GlRedwine]

I have a 1099-MISC for oil/gas royalties. The only amount shown on the 1099 is "Royalties (Box 2)". The statement also shows "Other Deductions" and "Production taxes" amounts which account for almost half the total royalties amount. Can these amounts be deducted? If so, how & where?

Also, can I deduct taxes paid to the county where the wells are located?  The wells are located in West Virginia. I live in Texas.

[DawnC]

Use the instructions in the link below to enter your royalty income on 1099-misc.   After you enter the income, you will move to the expenses section where you can deduct your expenses.  You will be able to enter production taxes as well as other taxes and deductions related to the royalty income.   

How do I enter a 1099-MISC for royalty income?

Basic tax reporting oil and gas 1099-MISC royalties

[Mike9241]

something important that's not on the 1099-MISC - the Depletion! deduction. To calculate that you'll have to go to the royalty website. It'll have either a depletion calculator or a booklet that tells you how to compute this deduction.  Do you pay the taxes directly to WV or are they deducted from your royalty payments?

the royalties are reported on Schedule E - gross (box 2) and then the  deductions 

"Other Deductions" and "Production taxes" amounts which account for almost half the total royalties amount. Can these amounts be deducted? YES on Schedule E. As for the county taxes if paid directly to them they would be deductible but if deducted from the royalty payment, they're probably reflected on that 1099