My Linn K-1, Box 13 Other deductions has a code J intangible drilling cost, 1954. Also, Box 20, Other information has, T* STMT. Seems that is Allowable Depletion, 1767. From the Graphic, it appears those figures should add up and go to Schedule E, passive income. So my taxable income increases by $3721. Does that seem right or should those figures from the K-1 be entered as negative numbers?
Seems odd that drilling cost and depletion would increase my taxes.
Thanks in advance.