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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
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Experience:  15years with H & R Block. Divisional leader, Instructor
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if I sell Mineral Rights how is that money taxes Federal

Resolved Question:

if I sell Mineral Rights==how is that money taxes? Federal Tax Arkansas State land in Texas
Submitted: 6 years ago.
Category: Tax
Expert:  Robin D. replied 6 years ago.

Hello and thank you for using Just Answer.

If you sell your complete interest in oil, gas, or mineral rights, the amount you receive is considered payment for the sale of section 1231 property, not royalty income. It will be shown on Schedule D. You will be taxed on the sale in Arkansas too.

I sincerely XXXXX XXXXX information is helpful,

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Customer: replied 6 years ago.

THIS DOES NOT ANSWER QUESTION===AMT OF TAX IN TEXAS AMT OF TAX IN ARKANSAS

 

 

Expert:  Robin D. replied 6 years ago.
That will depend what your income from the sale. You will report the amount on your Arkansas tax return and it will be added to your other income. there is no tax reporting to Texas on the sale as Texas has no personal income tax.