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How to resolve ProConnect Tax diagnostic ref. 2000184

by ProConnect Tax Online Updated 7 months ago

This article will help you resolve the following diagnostic, electing to expense intangible drilling and development (IDC) for nonproductive wells:

"Oil and Gas property #X:  Dry hole expenses of $XX have been entered. For this amount to be allowed as a deduction, the nonproductive well must have been completed in the current tax year and an election must be attached to the return." (Ref #2000184)

  1. Go to Input Return Other Elections.
  2. Select the Other tab.
  3. Scroll down to Election to Expense IDC for Nonproductive Wells Section.
  4. Place a checkmark in the box Expense intangible drilling & development costs [263(c)].
  5. Enter a Description of well and Total costs incurred to complete the statement.
  1. Go to Input Return Other Elections.
  2. Select Elections in the upper right corner.
  3. Select the Other tab.
  4. Scroll down to Election to Expense IDC for Nonproductive Wells Section.
  5. Place a checkmark in the box Expense intangible drilling & development costs [263(c)].
  6. Enter a Description of well and Total costs incurred to complete the statement.
  1. Go to Input Return Other Elections.
  2. Select Elections in the upper right corner.
  3. Select the Other tab.
  4. Scroll down to Election to Expense IDC for Nonproductive Wells Section.
  5. Place a checkmark in the box Expense intangible drilling & development costs [263(c)].
  6. Enter a Description of well and Total costs incurred to complete the statement.
  1. Go to Input Return Other Elections.
  2. Select Elections in the upper right corner.
  3. Select the Other tab.
  4. Scroll down to Election to Expense IDC for Nonproductive Wells Section.
  5. Place a checkmark in the box Expense intangible drilling & development costs [263(c)].
  6. Enter a Description of well and Total costs incurred to complete the statement.
  1. Go to Input Return Other Elections.
  2. Select Bene. Elections in the upper right corner.
  3. Select the Other tab.
  4. Scroll down to Election to Expense IDC for Nonproductive Wells Section.
  5. Place a checkmark in the box Expense intangible drilling & development costs [263(c)].
  6. Enter a Description of well and Total costs incurred to complete the statement.
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