Drake Tax - 1040: Depletion

Where to enter depletion on a 1040 return

Oil and gas depletion can be calculated using the DEPL screen on the Adjustments tab.

1. View the completed Form 1040 and locate the taxable income line. Enter this amount on the DEPL screen, line 17.

2. Complete the For and MFC fields.

3. Select 15% or 22% from the Applicable Percentage drop list. The DEPL screen calculates only oil and gas depletion and requires either 15% or 22%.

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

5. Enter any other necessary information on the DEPL screen.

6. View the return and look for Wks DEPL.

See Publication 535 for more information on calculating depletion.