When entering a K-1 from a LLC that has O&G income on an individual client, the system is saying my depletion is limited by passive activity. How do I fix this and get it to net the depletion against the royalty income?
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Enter a 1 in "1=report depletion on Schedule E, page 1 (royalty)", which is the last item in the Oil & Gas section in Screen 20.1.
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Thank you! I underestimated how challenging figuring out a new system was going to be. You have been so helpful!
