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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11605
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have five oil and gas K-1s and they all show an amount for

This answer was rated:

I have five oil and gas K-1's and they all show an amount for cost depletion. Where do I enter that number in my 1040?

Lane :

Hi,

Lane :

You'll need to use schedule E

Lane :

It goes on line 18, which will the total to line 20

Lane :

THe that ends up flowing to


Form 1040, line
17

Customer:

So the cost depletion amount in the K-1 information 20t, will go directly to schedule E?

Customer:

The other information from the K-1's is flowing to Schedule E page two, not page one.

Lane :

That's right

Lane :

Hang on and i'll ge the schedule E instructions site for you

Customer:

That's okay, I have the IRS instructions,

Customer:

So I enter the depletion as an orphan on page one, schedule E - in the next available column, correct?

Lane :

Sometimes thet HTML site is easier to get around

Lane :

You have it

Lane :

ote that it says"18 Depreciation expense or depletion"

Customer:

okay, thank you.

Lane :

YW

Customer:

is there an associated form to file explaining that depletion deduction?

Lane :

NO, sorry we get So many question on that issue .. IRS will get a copy of the K1 and match it up

Customer:

okay, thanks again!

Lane and other Tax Specialists are ready to help you


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Thanks again,
Lane