Common questions about Fiduciary Oil and Gas in Lacerte

Select the links below to see solutions for frequently asked questions on entering Oil and Gas properties in a Fiduciary return.

• Entering Oil and Gas Information
• Understanding how Lacerte calculates the oil and gas depletion deduction
• How to resolve Lacerte diagnostic ref. 2000184

Starting in tax year 2024, California law does not allow the IRC Section 263(c) deduction for intangible drilling and development costs in the case of oil and gas wells paid or incurred on or after January 1, 2024. Also, California no longer allows the calculation of depletion as a percentage of gross income from the property for specified natural resources, including coal, oil shale, oil and gas wells. Cost Depletion must be used.