Rights to drill

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  • Possi
    Senior Member
    • Mar 2006
    • 1432
    #1

    Rights to drill

    My new client gets 5K a yr for the rights to drill on his property. He calls it "rent" but I don't think it is truly rent.

    Can't this go on "other income?"
    "I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey
    Tags: None
    • Koss
      Senior Member
      • Jul 2005
      • 2256
      #2
      Mineral Rights?

      I think this can get really complicated, really fast...

      You may be getting into a minefield.

      Or an oilfield. [LMAO]

      BMK
      Burton M. Koss
      koss@usakoss.net

      ____________________________________
      The map is not the territory...
      and the instruction book is not the process.

        Comment

        • okie1tax
          Senior Member
          • Jun 2008
          • 177
          #3
          Try this to start

          Main Forum / Tax Discussion - TMI Message Board
          http://www.thetaxbook.com/forums/showthread.php?t=19457
          Primary Forum for posting questions regarding tax issues. Message Board participants can then respond to your questions. You can also respond to questions posted by others. Please use the Contact Us link above for customer support questions.

            Comment

            • AJsTax
              Senior Member
              • Jun 2008
              • 629
              #4
              IRS Code

              Originally posted by Possi
              My new client gets 5K a yr for the rights to drill on his property. He calls it "rent" but I don't think it is truly rent.

              Can't this go on "other income?"
              The code ( I dont have the number in front of me) is very specific on these payments.
              It must be reported on Sch E as rents.
              AJ, EA

                Comment

                • JohnH
                  Senior Member
                  • Apr 2007
                  • 5339
                  #5
                  Originally posted by Koss
                  I think this can get really complicated, really fast...

                  You may be getting into a minefield.

                  Or an oilfield. [LMAO]

                  BMK
                  Either way, you're outstanding in your field.
                  "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

                    Comment

                    • Possi
                      Senior Member
                      • Mar 2006
                      • 1432
                      #6
                      Thanks!

                      Thanks for the laughs, AND the useful information!
                      "I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey

                        Comment

                        • Koss
                          Senior Member
                          • Jul 2005
                          • 2256
                          #7
                          Drilling

                          Does this mean that a dentist also has to report income on Schedule E?



                          BMK
                          Burton M. Koss
                          koss@usakoss.net

                          ____________________________________
                          The map is not the territory...
                          and the instruction book is not the process.

                            Comment

                            • JohnH
                              Senior Member
                              • Apr 2007
                              • 5339
                              #8
                              Is this thread starting to decay?
                              "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

                                Comment

                                • Koss
                                  Senior Member
                                  • Jul 2005
                                  • 2256
                                  #9
                                  Difficult clients...

                                  Well, sometimes getting all the needed information from a client is like pulling teeth...

                                  BMK
                                  Burton M. Koss
                                  koss@usakoss.net

                                  ____________________________________
                                  The map is not the territory...
                                  and the instruction book is not the process.

                                    Comment

                                    • JohnH
                                      Senior Member
                                      • Apr 2007
                                      • 5339
                                      #10
                                      Yes, I understand.
                                      They give us partial information and expect us to fill in the gaps.
                                      "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

                                        Comment

                                        • Possi
                                          Senior Member
                                          • Mar 2006
                                          • 1432
                                          #11
                                          bridge

                                          Most of the time the partial causes us to bridge...
                                          "I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey

                                            Comment

                                            • Lion
                                              Senior Member
                                              • Jun 2005
                                              • 4699
                                              #12
                                              Bite me!!!

                                                Comment

                                                • BP.
                                                  Senior Member
                                                  • Oct 2005
                                                  • 1750
                                                  #13
                                                  groan . . .

                                                  Enjoy the well-deserved plaque for humor, guys!

                                                    Comment

                                                    • Jesse
                                                      Senior Member
                                                      • Aug 2005
                                                      • 2064
                                                      #14
                                                      Originally posted by Possi
                                                      Thanks for the laughs, AND the useful information!
                                                      Ditto that!!
                                                      http://www.viagrabelgiquefr.com/

                                                        Comment

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