Virginia, thanks for your offer. Will email you offline. And thanks so much for your help.
Virginia Pflum said:
John,
Glad things are working out for you. I didn't understand that you were ID as an interest owners. I thought the oil company just found you and you got your first check.
Do you have the name of a good land man? If not, I can give you a name off line. If you need the name, email me at pflum1@sbcglobal.net
Also, Buddy that is on the forum sounds real good on these issues. I don't know him, only what knowledge he has giving on line.
How do I figure out my mineral depletion deduction on my federal taxes? I have all of my royalty production statements for the year BUT I really have no idea how to determine the value. If you have a link or other information that would be helpful that would be great. Also would I claim any depletion on the first year of production?
Wish I could help, but my CPA does that for me. I think it's a % of the total. You may look under fed. tax on line and see if it says anything about depletion tax. My taxes are such a mess that I only look at what he puts in the boxes to be sure that is right and hopes he does everything else O. K.
Yes, the depletion deduction is on Line 18 of Schedule E of Form 1040. Last year, it was 15%, if I recall correctly. I don't know what it is for 2013. Presumably, for those states that also tax income, there is a depletion deduction as well. Depending upon how much royalty income one has, a 15% deduction from taxation can add up nicely!