Quick question on filling out the Schedule E.
I received a 1099-MISC that includes the following information:
- Gross revenue (reported to IRS)
- Deductions from revenue (not reported to the IRS)
- Production taxes
- “Other” revenue deductions
- Federal or state withholding amounts (they are both zero)
I am considering accounting for the expenses from revenue on my schedule E in the following manner:
- Line 16: Taxes: Production taxes (from list above)
- Line 18: Depletion: 15% of gross revenue (percentage depletion)
- Line 19: Other: “Other” revenue deductions (from list above)
Is this approach correct?
Or am I unable to list the deductions above (i.e, “Production taxes” and “Other revenue deductions”) from Schedule E, given that I am already allowed to take a 15% depletion expense?
Thank you for your time!