Through a Royalty Deed I inherited in 2025, I’ve now received one very small, but IRS reportable, sum of money that I need to include on my 1040 and I have a very basic question that I hope someone will answer. The 1099 - MISC form that I received only showed 3 amounts, one for Royalties, one for Prod./Taxes, and one for Total which was the amount I received. I do my own taxes using TurboTax and everything was input correctly, but TurboTax threw in a number for Depletion. Since I don’t own the land and am only receiving mineral right royalties, is this depletion even appropriate?
Yes, 15% of gross production revenue for % depletion is an allowed deduction.