schirallicpa Posted March 27, 2011 Report Share Posted March 27, 2011 (I swear I can't pick up a single return this year that is cut and dry. Every one has something funky going on this year........) This guy gets a 1099 from an exploration company for $20,000. It's listed as Other income. He says it's for mineral rights. I'm thinking NO on the depletion since it's just their purchase of the rights to minerals. Not from the production of minerals. Looking for another opinion. Thanks. Quote Link to comment Share on other sites More sharing options...
rfassett Posted March 27, 2011 Report Share Posted March 27, 2011 No depletion. Your thinking is correct. That is most likely a 1040 other income thing. Quote Link to comment Share on other sites More sharing options...
Edward Posted March 28, 2011 Report Share Posted March 28, 2011 Sounds to me like this is what they call a Lease Bonus (Initial)which is basic consideration for executing the lease. If this is the case, the O&G exploration company has listed it as other income when it should be shown as rents. Ask the client if this is the case, and if so, he can get a corrected 1099-Misc. Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted March 28, 2011 Author Report Share Posted March 28, 2011 Thanks you. Glad to have this forum just to double check thoughts sometimes. Quote Link to comment Share on other sites More sharing options...
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