So does this mean the Sect 1250 gain reported on a K-1 is a portion of the Section 1231? For instance, assume the 1231 shows $2,000 and the 1250 shows $800, is ...
TT was treating the net royalty income and depletion allowance as a passive property, just like rental properties. The income was treated as current passive inc...
So, I was able to fix the depletion allowance and royalty income issue related to improperly showing on Form 8582. First I had to report royalties on a differen...
Thanks for your response. See my response to another poster, but in this case depletion is computed at 15% of the royalty / overriding royalty income every year...
Thanks for the quick reply.These are all ORR or Royalty Interests. The revenue is listed on Line 7 - Royalties of the K-1. Some years the preparer includes code...
