Oil Well Royalties Depletion

Forum|Forum|6 years ago
March 17, 2020
1 reply
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It shows a depletion on my taxes for Oil Wells in North Dakota. I only own the Mineral Rights. I received a 1099 Miscellaneous from the oil company doing the drilling. Is this depletion correct to take? I am getting less from them this year.

TurboTax Home & Biz Windows

Best answer by RobertG

The depletion allowance is calculated as part of the interview when you are entering your royalty information.

If you are receiving oil royalties TurboTax will automatically calculate the depletion allowance.

For oil and gas royalty owners, percentage depletion is calculated using a rate of 15% of the gross income based on your average daily production of crude oil or natural gas, up to your depletable oil or natural gas quantity.

RobertGAnswer

The depletion allowance is calculated as part of the interview when you are entering your royalty information.

If you are receiving oil royalties TurboTax will automatically calculate the depletion allowance.

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brkirchh1

It did not given me the 15% for depletions. Am I putting something in wrong? I tried to type the amount into the box under forms and it would not let me.