OIl/Gas Royalties

Forum|Forum|4 years ago
February 2, 2022
8 replies
40 views

Good morning,

Does anyone know if oil/gas royalties and production tax can be declaried through Proseries?

Thank you, Dawn.

ProSeries Basic

This topic has been closed for replies.

Best answer by PATAX

It usually goes on schedule E... There will be a code for royalties. Look in the quickfinder or us Master tax guide or other book for information on this activity. Just my opinion

T

Terry53029

Intuit Community Champion

Try schedule E, unless you hold an operating oil, gas, or mineral interest, then schedule C

J

jeffmcpa2010

Level 10

Normally the 1099 you receive will give you a clue (if it's over $600) which form to report on. 1099-Misc would be Sch. E, 1099-Nec is SCH C.

Again that only helps if the amount is high enough to trigger a 1099.

Unless it is a new investment, you may be able to tell from a prior return.

PATAX

Level 12

Jeff good points there... Most 1099 forms in this area are well over $600.. Some people getting approximately $1,000 an acre a month for royalties! Pretty nice huh.

PATAXAnswer

Level 12

It usually goes on schedule E... There will be a code for royalties. Look in the quickfinder or us Master tax guide or other book for information on this activity. Just my opinion

SensibleandHourlyAuthor

Level 6

Thank you everyone! The form is a 1099-Misc, royalties received 168.00. But there is also a box for Prod/Tax of 42.00. I did find a way to add that to Schedule E because it reduces the income, plus an acknowledgment of depreciation of 15% as well. Net income of 101. After studying the prior tax returns and a bit of research, I think I have it correct. Much work for that 1099. 😉

Sure do appreciate this community!!!!

J

jeffmcpa2010

Level 10

In case no one else has mentioned it -(I didnt read all the way through again) read up on "percentage depletion" is you haven't and are not familiar with it.

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