schirallicpa Posted May 23, 2013 Report Share Posted May 23, 2013 Taxpayer has S-corp k-1. Corp is independent oil producer and takes percentage depletion. However, depletion becomes a pass-thru item. But, as coded on k-1, it is not linked. How/ where do i put the deduction? Quote Link to comment Share on other sites More sharing options...
joanmcq Posted May 24, 2013 Report Share Posted May 24, 2013 Sch E? Is it a working interest or a royalty interest? Quote Link to comment Share on other sites More sharing options...
OldJack Posted May 24, 2013 Report Share Posted May 24, 2013 See Publication 535, Business Expenses. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted May 24, 2013 Report Share Posted May 24, 2013 I have a client who invested in one of those limited oil and gas partnerships. His K1 used to have a figure for depletion and I seem to recall that we took the deduction on Sch E, but it was passive activity. Most K1s that I get comes with a nice chart of where to plug the figures. It is very helpful. Quote Link to comment Share on other sites More sharing options...
FLORIDA TAX MAN Posted May 24, 2013 Report Share Posted May 24, 2013 Whomever in Congress coined the term PASS-THRU should have Diarrhea. Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted May 29, 2013 Author Report Share Posted May 29, 2013 I know what the publication says. Put it on Sch E. Great. But the k-1 part is on schedule E page 2 and it does not have a place for depletion. So do I just stick it on page 1 all by itself? Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted May 29, 2013 Report Share Posted May 29, 2013 I believe Sch E line 18? Quote Link to comment Share on other sites More sharing options...
Joel Posted May 30, 2013 Report Share Posted May 30, 2013 For my clients that have depletion from their oil/gas partnerships, I create a new k-1 entry with the partnership name + Depletion. Then I enter the amount on line 1 as a negative number. Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted May 30, 2013 Author Report Share Posted May 30, 2013 Actually - this is exactly what I ended up doing. Thanks. Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted June 4, 2013 Report Share Posted June 4, 2013 I guess I need to start responding to every post whether I am right or wrong so I can get some more stars/dots by my name and promote my status. Geez! What happened to giving correct information to help others? I know one thing which is I don't respond if I don't know and I may research to help if I have time. I also, know that I have been preparing taxes for 17 years now and have not had a client that matches every scenario. Hell, even if I did, I couldn't remember it all. Quote Link to comment Share on other sites More sharing options...
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