Percentage Depletion in Excess of Basis

Oil and Gas

Enter the excess depletion from Schedule K-1. This entry is used in computing the basis and at-risk limitations (Form 6198).

Per the partner’s K-1 instructions, oil and gas percentage depletion only decreases basis to the extent that it does not exceed the basis in the oil and gas property.  An amount entered in this code will reduce the amount of percentage depletion subjected to the basis limitations.

This entry will also be an increase on Form 6198 “Amount At-risk?.