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Old 03-11-2015, 12:15 PM
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mineral trust and depletion

Where does a family mineral trust enter depletion for oil and gas production?



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Old 03-12-2015, 12:10 AM
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Originally Posted by dphickel View Post
Where does a family mineral trust enter depletion for oil and gas production?
Mineral owners are allowed tax relief by the IRS for producing and depleting nonrenewable resources such as oil and gas.i guess A distribution of cash or property from a trust may or may not be a taxable event. Rather, you should look to the sch K-1 the trust distributes to its beneficiaries to determine your reportable items. If a trust is invested in an oil & gas partnership and is entitled to deduct depletion, it may elect to pass through such deductions to the beneficiaries. You should see the reportable deductions on your K-1;depletion deductions for property held by a trust are apportioned between the income beneficiaries and the trust depending on the provisions of the trust. Report your allocable depletion deductions to the income beneficiaries in box 9 using code B of 1041 on Form 8582 of Sch E, line 33, column (c) or (e).



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Old 03-12-2015, 11:01 AM
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mineral depletion

Thank you for the information. Next question. My 1099 lists a production tax, but it's not in one of the boxes, it's on the back of the page. Where would I put this? On the K1 for each distribution recipient?



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