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how is the sale of mineral rights reported on federal tax return,

is it treated the same as...
how is the sale of mineral rights reported on federal tax return, is it treated the same
as selling real estate?
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Answered in 32 minutes by:
3/17/2011
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
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Robin D :

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Robin D :

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. Under certain circumstances, the sale is subject to capital gain or loss treatment on Schedule D (Form 1040). You generally report royalties in Part I of Schedule E (Form 1040). However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc., report your income and expenses on Schedule C or Schedule C-EZ (Form 1040).

Robin D.
Robin D., Senior Tax Advisor 4
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