Malissa Posted March 5, 2021 Report Share Posted March 5, 2021 (edited) Quote From a topic 5-years ago that the OP quoted: Transferees who cannot claim percentage depletion. You cannot claim percentage depletion if you received your interest in a proven oil or gas property by transfer after 1974 and before October 12, 1990. For a definition of the term “transfer,” see section 1.613A-7(n) of the regulations. For a definition of the term “interest in proven oil or gas property,” see section 1.613A-7(p) of the regulations. Under 1-613A-7(n), inheritance is one of the transfers. So, for the years between 1974 and 1990, no depletion allowance. How do you enter depletion in ATX? Do you attach it to a Sch E? and does the above mean after 1990 a TRANSFER can take depletion? Edited March 5, 2021 by jklcpa moved post to its own topic instead of reviving 5-yr old thread Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted March 5, 2021 Report Share Posted March 5, 2021 I think you have to know what type of well interest you have. So I'm in western NY and there are small producers all over this area. (Scrappers) They get a straight 15% depletion deduction (their interest or amount to be reported as income * 15%). If it's on a royalty, it is on Sch E. If they are working the lease, it's on Sch C. However, in the bigger oil world, there is a whole different set of rules. 2 Quote Link to comment Share on other sites More sharing options...
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