Where do I list the deductions taken for production expenses listed on 1099-MISC?

[Claudia-McKane]

Production taxes and deductions are taken out of the royalties I receive from gas and oil revenue.  Where do I list them so they appear on Schedule E?

[PaulaM · Accepted solution]

You can list them along with any other taxes paid in the Common Expenses or in the Miscellaneous expenses.

Note: Be certain to deduct depletion (15%) and any other expenses you have. You will only want to pay taxes on the net amount you received, not the 1099-MISC gross. Any additional depletion that your state may allow (OK does) will be an adjustment under your state taxes.

[nonamoore1]

TT does to have a production costs block and does not let me add a line for production cuts and deductions for gas and oil royalties. How do I aim these expenses?

There is no Miscellaneous Expenses category either

[KathrynG3]

Use the category Other Common Business Expenses. Then, scroll down to Other Miscellaneous Expenses.

Otherwise, the Cost of Goods Sold section could be used.

Please clarify what you mean by deductions for gas and oil royalties. Gas and Oil Royalties are taxable.

@nonamoore1