Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Why is the depletion not offsetting the royalty income from a K-1?

Emm1234
Level 3

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? 

0 Cheers
1 Best Answer

Accepted Solutions
PhoebeRoberts
Level 11
Level 11

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.

View solution in original post

2 Comments 2
PhoebeRoberts
Level 11
Level 11

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.

Emm1234
Level 3

Thank you! I underestimated how challenging figuring out a new system was going to be. You have been so helpful!