Knowledge Base

11418: 1040 - Depletion

1040 Individual

Where do I enter depletion on a 1040 return?

Beginning with Drake15, oil and gas depletion can be calculated using the DEPL screen. The DEPL screen can be accessed from the Adjustments tab or from links on the C, E, K-1P, and K-1S screens.

Entering Data in the DEPL Screen

Before entering data in the DEPL screen, complete the rest of the return and then view the 1040 to locate the taxable income line. Enter this amount on line 17 of the DEPL screen.

Note: In Drake17 and prior, you need to combine the taxable income (line 43) and Domestic production activities deduction (line 35) for the entry on line 17. 

Enter other necessary information on the DEPL screen. Indicate the form to which this worksheet’s calculations should carry (in the For field), and which instance of that form (in the MFC, Multi-form Code, field).

Applicable Percentage field. Select 15% or 22% from the drop list. The DEPL screen calculates only oil and gas depletion and requires either 15% or 22%. See IRS Pub. 535 for more information on calculating depletion.

If you enter data in both the Cost Depletion and Percentage Depletion sections, the program calculates the best deduction for the taxpayer.

View the return and look for the Wks DEPL (WK_DEPL in Drake15 and prior). 

The Depletion field on screens CE, K1P, and K1S screens are override fields starting with the addition of the DEPL screen.

Prior to Drake15, enter oil and gas depletion information on the depletion line of the applicable form(s). Typically, the screens that could have depletion would be C, E, K1P, or K1S.

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