OIl/Gas Royalties

[SensibleandHourly]

Good morning, 

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

Thank you, Dawn. 

[Terry53029]

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

[PATAX · Accepted solution]

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

[jeffmcpa2010]

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]

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.

[SensibleandHourly]

Thank you, I'm getting a refresher on Schedule E! 😉 

[SensibleandHourly]

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!!!!

[PATAX]

You're welcome

[jeffmcpa2010]

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.