pass thru depletion from S-corp - where does it go?

[schirallicpa]

Taxpayer has S-corp k-1. Corp is independent oil producer and takes percentage depletion. However, depletion becomes a pass-thru item. But, as coded on k-1, it is not linked. How/ where do i put the deduction?

[joanmcq]

Sch E? Is it a working interest or a royalty interest?

[OldJack]

See Publication 535, Business Expenses.

[Guest Taxed]

I have a client who invested in one of those limited oil and gas partnerships. His K1 used to have a figure for depletion and I seem to recall that we took the deduction on Sch E, but it was passive activity. Most K1s that I get comes with a nice chart of where to plug the figures. It is very helpful.

[FLORIDA TAX MAN]

Whomever in Congress coined the term PASS-THRU should have Diarrhea.

[schirallicpa]

I know what the publication says. Put it on Sch E. Great. But the k-1 part is on schedule E page 2 and it does not have a place for depletion. So do I just stick it on page 1 all by itself?

[Guest Taxed]

I believe Sch E line 18?

[Joel]

For my clients that have depletion from their oil/gas partnerships, I create a new k-1 entry with the partnership name + Depletion. Then I enter the amount on line 1 as a negative number.

[schirallicpa]

Actually - this is exactly what I ended up doing. Thanks.

[Terry D EA]

I guess I need to start responding to every post whether I am right or wrong so I can get some more stars/dots by my name and promote my status. Geez! What happened to giving correct information to help others? I know one thing which is I don't respond if I don't know and I may research to help if I have time. I also, know that I have been preparing taxes for 17 years now and have not had a client that matches every scenario. Hell, even if I did, I couldn't remember it all.