How do I calculate the depletion allowance on Oil royalties earned in 2018 as a result of mineral rights that I own?

Forum|Forum|7 years ago
June 5, 2019
2 replies
3 views

No text available

TurboTax Premier Windows

Best answer by KittyM

The depletion allowance is 15% and is calculated on the followup page Enter Your Depletion Information in TurboTax when you enter the oil royalty information.

For example, if you have $1,000 in oil royalties, the depletion allowance is 1,000 x .15 (15%) or $150. You would enter that amount in the box if TurboTax does not calculate it for you.

KittyMAnswer

Level 10

The depletion allowance is 15% and is calculated on the followup page Enter Your Depletion Information in TurboTax when you enter the oil royalty information.

For example, if you have $1,000 in oil royalties, the depletion allowance is 1,000 x .15 (15%) or $150. You would enter that amount in the box if TurboTax does not calculate it for you.

aajaxcomm

Level 2

TT does not even ask me for depletion info after entering royalties.

KrisD15

Level 15

Enter the information under

Federal

Deductions & Credits

Rentals, Royalties, and farms

Rental Properties and Royalties

Yes

Type of property - Royalty

Continue through the interview to the Depletion Screen.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

JDL1

Level 2

There is no Rental, Royalties, and farms section under Federal Deductions & Credits. Why wouldn't it ask for this information when you enter the royalties under the Wages & Income section. I'm just sick, apparently I have missed this deduction since 2014 costing me hundreds of dollars! What good is TurboTax when it misses a major deduction like this?

ToddL99

Level 13

Depletion allowances (and calculations) are addressed in the Rental Properties and Royalties interview of TurboTax Self-employed (and Home & Business), under the Business > Business Income and Expense section.