How to keep percentage depletion in excess of cost basis from being reported on balance sheet?

[mikejuby369]

I have an LLC with oil royalties. They have no basis in the wells, but they qualify for percentage depletion. On the Allowable Depletion Report, PTO calculates the depletion but does not show any depletion in excess of basis. The percentage depletion is carried to the Schedule L balance sheet, which is erroneous since there is no basis to apply the depletion against. How can I have PTO treat this as excess depletion, or at least not carry it to the Schedule L?

[PhoebeRoberts]

You're looking for a screen that's close to the Balance Sheet input screen - I think in Lacerte it's called Balance Sheet Miscellaneous. The field is labeled Book Depletion. Enter a -1.

[mikejuby369]

PTO has a Balance Sheet Miscellaneous page, with Book Depletion as an option. The only field that allows a dollar input is "Accumulated book depletion on assets sold." I put a -1 in that field but the accumulated depletion on the Schedule L still shows the percentage depletion. However, I tried putting different amounts in the field and discovered that PTO was treating the amount as an adjustment. When I put the amount of the percentage depletion in the field as a positive number, it reduced the accumulated depletion on the Schedule L by the same amount, resulting in no accumulated depletion.

Thanks for your suggestion. Although I had to tweak it a little, it put me in the right place to get it fixed!