Depletion Expense
Depletion expense is usually associated with royalty income for use of landowners' natural resources such as oil, gas, and mining.
Menu Path: Income > Uncommon Income > Royalty Income (Schedule E)
Enter your royalty income on the Royalty Income screen. Enter any expenses that are related to the royalty income, such as depletion, on the Royalty Expenses screen.
Menu Path: Income > Business / Rental Income > Business Income (Schedule C)
If your royalty income was part of a Schedule C business, then enter the depletion expense as part of the Schedule C expenses.
Depletion expense is usually 15% of gross royalty income.
Menu Path: Income > Uncommon Income > Royalty Income (Schedule E)
Enter your royalty income on the Royalty Income screen. Enter any expenses that are related to the royalty income, such as depletion, on the Royalty Expenses screen.
Menu Path: Income > Business / Rental Income > Business Income (Schedule C)
If your royalty income was part of a Schedule C business, then enter the depletion expense as part of the Schedule C expenses.
Depletion expense is usually 15% of gross royalty income.
