Lease bonuses are not subject to depletion adjustments. They are taxable in the year received without adjustment. See Anderson v. Helvering
, 310 U.S. 404, 409 (1940) ("cash bonus payments, when included in a royalty lease, are regarded as advance royalties, and are given the same tax consequences." Bonus payments are not subject to percentage depletion after August 16, 1986 because of the enactment of IRC section 613A(d)(5).").
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