How to calculate depletion for working interest on 1040

Forum|Forum|9 months ago
September 23, 2025
2 replies
18 views

I use Proseries which is fine for simple returns but doesn't work for complex taxes. Is there a work around to calculate depletion expense for Sch C working interest Oil & Gas? I don't see anywhere to show the carryforward to next year based on net income limitations.

ProSeries Basic

T

Terry53029

Intuit Community Champion

this is the way you calculate if you use Cost depletion. (Adjusted basis of property / Total recoverable units) x Units sold during the tax year = Cost depletion deduction.

You can also use Percentage depletion. This method is calculated by applying a fixed percentage to the gross income from the property. The rate varies depending on the type of resource, which you can look up

The advantage of using percent is it may exceed your cost basis.

K

kgallandAuthor

Level 4

The problem is Proseries only allows manual depletion entries and since there is no program entry, I can't figure out how to carryforward depletion that is limited based on net income. It also doesn't show on the Federal carryover worksheet so I guess it would need a manual note added to Line 12 of Sch C

sjrcpa

Level 15

If the software doesn't track the carryover, track it yourself outside the software.

The more I know the more I don’t know.

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