Tracking Depletion Allowance for Oil & Gas Royalties


Has anyone figured out a method to track simple 15% depletion allowance on gross oil & gas royalties during the year to improve the accuracy of the Tax Planner?


  • MontanaKarl
    MontanaKarl Member, Mac Beta Beta

    You can fake it, but the impact on the tax planner is so minimal - unless most of your income is from Schedule E royalties - that I'm not sure you really want to? There is no cash flow involved in the depletion allowance/deduction - and so creating a cash flow entry in Quicken is just muddying the waters I think.

    There are many tax items that are not cash flow items and do not ever show up in Quicken. Unlike the depletion allowance which is a known percentage of gross royalty, there is no way to know those other items until receiving tax forms in the next year. So, the Tax Planner is an approximation at best.

    Quicken user since 1990, MacBook Pro M2 Max on Ventura 13.6.7 • Windows 11

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