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ON 1099 MISC WHICH BOX SHOULD HAVE BEEN USED FOR RECEIVING A…

ON 1099 MISC WHICH...

ON 1099 MISC WHICH BOX SHOULD HAVE BEEN USED FOR RECEIVING A MINERALS (OIL & GAS) PROPERTY LEASE (BONUS). ONE LESSOR HAS AMOUNT IN BOX 1 AND ANOTHER LESSER HAS AMOUNT IN BOX 7.

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

IT WAS FOR A LEASE OF MINERAL INTEREST

Accountant's Assistant: Is there anything else important you think the Accountant should know?

I DONT THINK SO WE ARE JUST CONFUSED AS ONE PERSON TOLD US THAT IF THEY HAD AMOUNT ENTERED IN BOX 7 WE HAD TO PAY TAX AND ANOTHER SAID HIS TAX PERSON SAID A LEASE SHOULD GO THERE BUT WE WOULD NOT HAVE TO PAY TAX???

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Answered in 1 minute by:
3/9/2018
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,401
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

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Taxpayers/lessors typically receive a lease bonus from a lessee — the party that extracts the natural resource — in consideration for granting the lease. A lease bonus may be paid in a lump-sum or multi-year payments. The lessee should provide the taxpayer with a Form 1099-MISC, Miscellaneous Income, listing the amount of bonus payments as “Rents” in Box 1. Taxpayers usually report their lease bonus income as rent on Schedule E.

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Customer reply replied 5 months ago
do I have to get another 1099 from that company showing it in box 1 or just report it as it should be?

You need to request a corrected 1099MISC because the box 7 is incorrect and has a different reporting placement.

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The IRS looks at the 1099MISC and where you reported on your return. If you make the correction yourself the IRS will delay your return and request to know why and you will have to respond and they will tell you to get a corrected 1099MISC.

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I know this seems like a delay but better to send with a corrected form then have the IRS send you the letter.

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Customer reply replied 5 months ago
you have been very helpful and I will contact you again after I receive this with any additional questions. How do I request you? Is the amount I paid now complete or if I want to call the amount shown?

Any call offer is site generated, just ignore it. That is an extra charge.

You can request me by name when you post your question.

I am credited when and if you rate in a positive way.

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,401
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified
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Customer reply replied 5 months ago
FILLING OUT TAX FORM USING TURBO TAX...... FOR OIL ROYALTIES RECEIVED FOR OIL EXTRACTED FROM OUR MINERAL INTEREST THAT IS LEASED TO A COMPANY. DOES IT GO ON SCH C OR SCH E. SHOULD IT BE LISTED AS INVESTMENT INCOME FROM PROPERTY WE OWN OR FOR ROYALTY INCOME

Schedule E

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