1120-US: Cannot increase the accumulated adjustments account by excess depletion (FAQ)

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

Change to CS Support service hours

Our Support department is closed on [[date]]. However, limited UltraTax CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline.

Links to our most popular tax processing topics are available in the Alerts and notices section on the right side of most pages.

Question

Why doesn't UltraTax CS increase the accumulated adjustments account by excess depletion?

Answer

One of the items listed in Regulation 1.1368-2(a)(2) as an increase to the accumulated adjustments account is the excess of the deductions for depletion over the basis of property subject to depletion, unless the property is an oil or gas property the basis of which has been allocated to shareholders under section 613A(c)(11).

The increase to the accumulated adjustment account for the excess depletion only applies when the depletion is not from oil and gas depletion. Section 613A(c)(11) relates to depletion with respect to any oil or gas property.

UltraTax CS does not calculate depletion from a non oil and gas property. You must make a manual adjustment to increase AAA in Screen Ms, if applicable.

Related topic: 1120-US: Accumulated adjustments account and depletion FAQs

Share This