depletion limitations

[Unregistered]

Client has Sch C working interest with large depletion c/f amounts. Client meets the 100% of taxable income from property limit.
When applying the 65% limitation, is it correct to figure this on the taxable income on the 1040 page 2, without depletion? If so, this will limit some of the previous carryforwards and also thereby increase the Sch C profit.?

[Bees Knees]

Don't worry about it. The 65% of taxable income limit was suspended for any taxable year beginning after December 31, 1997, and before January 1, 2006. So it won't apply until you have to do a 2006 tax return. (see QF update dated 11-30-04).