K-1 for a PTP Box 13

[JG EA]

If you have a box 13 letter J* (no amount there) with an additional statement the says
13J1 Intangible Drilling Costs $XXX.XX
13J2 Intangible Drilling Cost M& D $XXX.XX

It says that this amount has not been deducted from Box 1 amount.

Would it be taken on E2 ?

The issue I am stuck on is no income but a loss in box 1 so I would assume these costs would be held over anyway?

Or are they taken now as a current deduction -59e over 60 mo - or just all at once as it says in their letter? It doesn't say anything in their letter about not taking it if Box 1 is a loss.

[jimfrombx]

I believe you have an option to amortize over 60 months or all at once. Even though there is a passive loss in 1 the IDC are passive losses permitted. Sch E L28 columm (f).
Some software handles better than others.

[JG EA]

Thank you so much. That is exactly what I wanted to know.