Percentage Depletion Calculation for Royalties from other than OIL and Gas

[jeffery_dewlaney]

Hello

Is anybody familiar with entering percentage depletion for royalty income from other than oil and gas properties.

Thanks

[qbteachmt]

Film?

Songs?

Books?

Products?

It would be helpful if you simply gave the details. Thanks.

[jeffery_dewlaney]

Hi

The property is a mineral property generating royalty income.

[qbteachmt]

Okay, let's keep asking:

Which specific mineral?

What type of rights?

Ownership? Lease? Overriding?

Is the question about method to use? Basis?

See how details really help? Because I'm running out of questions to ask. Thanks.

[jeffery_dewlaney]

Hi

They are an owner of a mineral rights property for which they are paid royalties reported to them on Form 1099-Misc.

I am not sure at this time specifically which type mineral. I would like to know where you would input the data in Lacerte for percentage depletion.

Thanks

[qbteachmt]

"I am not sure at this time specifically which type mineral."

Okay.

Schedule E.

[jeffery_dewlaney]

Hi Again

Let's assume it is gold for purposes of this discussion.

Thanks

[qbteachmt]

I'm sorry; I'm pretty much at a loss. What do you need help with, specifically?

Your first question was, "Is anybody familiar with entering percentage depletion for royalty income from other than oil and gas properties."

Your only identifiable request was, "I would like to know where you would input the data in Lacerte for percentage depletion."

I feel like I'm watching a ping pong game, but my participation here is the ball.

[qbteachmt]

@PhoebeRoberts 

Perhaps you will be better at mind reading.

[sjrcpa]

How are you going to deplete something if you don't know what the something is?

[BobKamman]

There's a line for deducting depletion on Schedule E.  Find the percentage here:

https://www.law.cornell.edu/uscode/text/26/613 

[PhoebeRoberts]

I agree with this answer. You figure out what's being depleted, look up the percentage allowable, and enter that percentage into the Schedule E.