I received a check in 2008 as a bonus for the lease I signed with a gas company in 2007. They sent me a 1099-MISC, where they reported the payment as a rent.
How do I include this payment in the Schedule E? Is there any expenses that I can recognize to reduce this income? Please advise. Jocelyn
in article snipped-for-privacy@e38g2000yqa.googlegroups.com, snipped-for-privacy@gmail.com at snipped-for-privacy@gmail.com wrote on 3/12/09 9:32 PM:
I had one of these in the state of PA this year. Just show the 1099MISC as rent on the Schedule E. If you are using tax software, when you enter the
1099MISC, it will ask you what you want to hook it up to and you pick your schedule E. We deducted RE tax, legal fees, fees for maintaining the property, etc. We also had to file a PA non-resident return because my client lived in TN.Uncompensated advice guaranteed correct or double your money back
Frank S. Duke, Jr. CPA Cincinnati, OH USA
hmmm,... maybe depletion allowance? Is there a percentage for natural gas?
Certainly taxes on the land.
ChEAr$, Harlan Lunsford, EA n LA
You don't. Working interests in oil and gas go on schedule C.
Only if you incurred the expenses.
True, but then it should have been reported in 1099-MISC Box 7, not as a rent.
To follow on Harlan's comment, a working gas or oil interest reportable on Schedule C will normally have a depletion expense in addition to other expenses.
-Mark Bole
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