terralaw
Level 2

Thank you, Phoebe.

I entered royalties, production taxes and other expenses in the Oil & Gas Input, under property information. 

The costs indeed show up under 13 I, but the same costs are also showing up in Box 20 code AJ. Also showing up in Box 20, Code AJ is only lease bonus payments. The description is "Aggregate Business Activity Gross Income" for the lease bonus. The description is "Aggregate Business Activity Total Deductions" for the production tax and other expenses.

Given that the production tax and other expenses were generated in connection with royalties, I would expect the royalty income to get the same treatment as the expenses (production taxes & other expenses). However, the royalties are NOT showing up in Box 20, Code AJ.

Do you know why that would be happening? I didn't run into this problem last year with Proconnect, with the same inputs. Is Code AJ new?

 

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