Does Turbotax Delux handle Depletion for Oil Royalties in 2024?

Yes, TurboTax Deluxe can handle depletion for oil royalties. It calculates percentage depletion based on your income from the royalty property. The depletion rate for oil properties is typically 15% of the gross income

To enter this information in TurboTax Deluxe:

1. Open or continue your return. For the link in step 2 to work, you must be signed in to TurboTax.
2. Navigate to the 1099-MISC section:
   • TurboTax Online/Mobile: Go to 1099-MISC.
   • TurboTax Desktop: Search for 1099-MISC and select the Jump to link.
3. When you enter your 1099-MISC, enter the income in Box 2 - Royalties. On the following screen, choose the source of your royalty income:
   • Royalty investment income from a natural resource, intellectual property or other investment portfolio (no operating interest) – This includes natural resources extracted from your property by a third party who leases your property, as well as royalties from intellectual property that you didn't create yourself. This gets reported on Schedule E.
   • .TurboTax automatically calculates percentage depletion for a royalty property with income entered on Schedule E under Rental Properties and Royalties. See the original post here.