Filing non-resident tax form for Oklahoma. What is the percentage depletion for lease bonus payments? Alternatively, where to find this information? Betsy McBride, Boise, Idaho
https://www.ok.gov/tax/documents/511Pkt-17.pdf ---- Go to 511-A section, look at A8 paragraph…
22% Oklahoma for royalty AND bonus at taxpayer option — however, depletion taken on bonus is recaptured in later years if the property does not produce or is drilled. And Oklahoma follows property/net income limitations. No federal percentage depletion allowed on bonus but I believe cost depletion is allowed on bonus if you calculate under that premise.
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Thank you over and over. I saw on form 511NR that if no minerals by end of lease, then all depletion allowances would have to be “recaptured.”
So, here to hoping that the drilling eventually gets to Section 32 0707.