How to report depletion allowance where minerals are held in Sub-chapter S corporation

My mineral rights are held in a sub-chapter S corporation. I’m working on the corporation’s 2022 return that is due today. The instructions for the corporation state NOT to account for the depletion allowance on the corporation’s return, rather, the shareholder accounts for the return in his or her 1040.

Here are my questions:

Do I figure the shareholder’s proportionate depletion allowance somewhere on the K-1? If so, where?

Where on the individual shareholder’s 1040 is the depletion allowance from the corporation’s royalty income reported?

In the past, I have deducted the depletion allowance on the corporation’s return; but, seems they changed the rules or I have done it wrong.

Many thanks.


This is a question for your CPA who is familiar with Sub-S tax returns.

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