nacbarbour
Level 2
09-17-2024
02:02 PM
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When I include depletion on Sch E part 1 as suggested, the depletion is limited due to passive activity loss limitations while the income is not allowed as an offset. Why? Seems that the royalty income should appear on Sch E page 2, Part III and the depletion should be a deduction in that same area.