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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13110
Experience:  15years with H & R Block. Divisional leader, Instructor
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Is a commission paid to an agent who represented me in negotiating

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Is a commission paid to an agent who represented me in negotiating a mineral lease bonus payment deductible as an offset against the bonus payment? I file a short form.

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Robin D :

Hello and thank you for using Just Answer.

Robin D :

Bonus payments do not qualify for percentage depletion deductions. However, other related lease expenses such as attorney fees, land surveying, deed or title work, and property taxes are deductible in the year they occur. The commission if paid from your bonus and shown on your 1099MISC is deductible.




Customer :

The 1099 will come from the Oil Company. I paid an independent agent from the proceeds of the bonus payment and have a receipt. The commission will not be reflected on the 1099. Do these facts affect the deductiblity of the commission?

Customer :


Robin D :

No this does not make a difference.

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