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Mesa Royalty Trust Message Board

  • oldmtrguy oldmtrguy Apr 8, 2010 1:00 PM Flag

    Depletion - Did You Notice?

    Since they lowered the reserve estimate last year, my calculated cost depletion has gone up dramatically this year. This year I calculate cost depletion at about 2.5 times the gross royalties received, so I report a loss on the MTR royalties. Last year it was about .8 to 1.0 times. Obviously depends how long you have owned it, but sure helped out the taxes this year!

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    • Looking back at 2008, the difference is not that dramatic. I sold all of my former MTR holdings in July and August of 2008, then bought back Dec 2008 thru March of 2009. I still own the latest batch. So the difference is more related to when I bought and sold than the cost depletion percentages allowed, although they did increase.

    • Having just retreived the Tax Info, I agree.

      The three annual rate % for 2009 were higher than 2008, not by that much. The depletion $$ was good, almost the same as last year's, from a lower basis and all.

      This is the last tax document I need to file. It's early this year!! I usually end up filing amended returns, mostly due to MTR in the past.

      • 1 Reply to valu_player
      • wether...Other investments can cause delays in filing and or having to file an amendment. For years we have had to wait to file till the 14th or 15th of April to make sure we are using the latest 1099 from our broker, Bk of Am Inv Ser. We don't own MTR or it's equivalent, but, do have 15 CEFs and ETFs. The problem stems from accountants not knowing how to properly determine what is dividends, cap gains,etc. Our broker blames the Nat'l Financial Co that makes out 1099s. It is a yearly fiasco. We all have problems, it seems. retiredafe8

    • I think you have calculated incorrectly.
      Did you calculate each different property separately and then combine the results?

      You need to calculate each of these separately
      -San Juan/New Mexico
      -San Juan/Colorado.

      Combining the calculation even of the two San Juan properties results in an incorrect answer.

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