Enter depletion amounts (except for oil and gas depletion) on line 15 of screen DED . Drake Tax does not calculate these depletion amounts – you must calculate depletion separately before making an entry.

Amounts entered here adjust any depletion flowing from any K1F screen, line 9 with code B – Depletion.

Timber Depletion

Use Form T to determine timber depletion. Enter the final amount on the DED screen, line 15. Attach the completed form to the return as a PDF. (See Drake Tax – e-File Attachments).

Oil and Gas Depletion

S corporations cannot deduct depletion on oil and gas wells. Each shareholder must determine the allowable amount to report on the shareholder's return. Use the DEPL screen for oil and gas depletion. This generates Wks DEPL in View/Print mode, which shows the totals. In each of the Schedule K-1 sets, you will see K-1 DEPL showing that shareholder's allocable amount.

See Publication 535 and the 1120-S Instructions for more information about reporting oil and gas depletion.

Other Entries

Additional entry fields for oil and gas depletion information are:

• Screen K1P> box 20 > code T (for a Schedule K-1 received by the S corporation)

• Screen K > Other Information tab > line 17R – Adjusts amounts carried from K1P screen, line 20, code T

• Screen K1E > Overrides tab > Line 17 > code R

• Screen K1E > Basis Wks tab > field 7b