PTP depletion-where does it go?

[joanmcq]

I've got the K1 I was bitching about on another thread. All done, but for the depletion deduction for working interest depletion. The royalty interest depletion goes on Sch E pg 1 ( and I had to start a new record since there's no way to get it to flow from the K1 to the actual record where the royalty income is reported since that line on the K1 isn't linked, and no overrides on the form....)

But, can't find anywhere to report the working interest depletion. Ordinary income is reported on Sch E pg. 2. I think in the last two years I used an override on the E pg. 2. Any ideas on a. How to do this in tax, and where the $&@* depletion is supposed to go? I believe working interests generally go on a Sch C, but this is a PTP. I'm about to just use line 21, but thought I'd come here for ideas first.

[Joel]

Create a new k-1 entry for the partnership with the word depletion added to the name and then put the depletion amount in box 1 as a negative.

[kcjenkins]

Create a new k-1 entry for the partnership with the word depletion added to the name and then put the depletion amount in box 1 as a negative.

A good practical work-around. Sometimes we have to be creative rather than let our tools [software, in this case] control us.

[joanmcq]

Thank you Joel. That's what I had to do for the royalty interest too. I'm particularly brain dead today. New client cancelled for the second time....by phone at noon, when I was being awakened at 1pm especially for that appointment. I didn't check my phone messages until I went to call him at 2:20 to find out why he didn't show.

Not getting another appt. until after April 15. And he begged for a consult before then.

[kcjenkins]

He called at noon, to cancel his 2 pm appt? Which was the second time? Let him beg, he does not deserve you, Joan. Tell him he can see you after May 15th.

[joanmcq]

Yes, and a day trader besides.

[kcjenkins]

Don't forget to double your normal fee!