I live in California and were trying to find the line on my 511 NR for the additional 7% on Oklahoma side. The 15% is a no brainer on your Sch. E for the Fed side. Since learning about the 22% for Oklahoma were stuck. Even the home office of my tax place doesn’t know. Hopefully Martha will read this and be able to help. She has been so helpful to me in the past. Also how to make this use tax of $21.00 zero out. I don’t live or buy anything in Oklahoma.
I am not an accountant so cannot give that type of advice. My accountant in OK handles it for me even though I live out of state. In general, I give her the information on Schedule 7 when we lease or force pool. We go ahead and take the 22% deduction at that time. If the tract is not drilled within three years or whenever the lease term is, then we give the deduction back in on Schedule 8. You really do need an oil and gas CPA to explain the ins and outs.
Thanks Martha, I know your not an accountant but I thought you might now. I know you live in Texas. What about the use tax? Do you get charged this. I never paid that before. I don’t go to a CPA and even the ones here sometimes from what I read have no clue on depletion. The 22% I just learned about from this site like a year ago. Always only did the 15%. Hopefully someone from California will read this and have info for me.
If I remember correctly, the 22% I was referencing was 15% fed and 7% OK. Don’t quote me, not my lane.
Oklahoma allows 22% depletion, as i learned from this forum last year. Can’t do anything about past years. Look on your return or your CPA should know. I have read on some sites that their CPA’s didn’t even know. My tax lady from Liberty has got the problem fixed after many many phone calls she got the right person. This whole use tax I guess Oklahoma imposed this fee a few years ago or something. Fed is always 15%.
The extra 7% depletion allowed by Oklahoma is reported on Line 8, Schedule 511-A, labeled “Oklahoma depletion”.
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Thank you for responding to Sandra’s query. I was going to look up my 511NR to give her an answer and you saved me a lot of time.