landowner

EOG sending 1099 for transporation cost

my land got included in the EOG lister unit. in 2012 I received a check for about $8000.00 but the gross was $14000.00 with EOG holding out $6000.00 fot "transportation cost"  well I got my 1099  from them for the entire $14000.00......this is NOT right I should NOT have to pay income tax on money I DID NOT make......What can I do to get this straightened out .......EOG says I have to pay income tax on the money that they paid the pipeline co.  Talked to EOG they said 1099 was right.......I know it is not     Please help!!!!

 

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Replies to This Discussion


landownerPermalink Reply by adubu on March 20, 2013 at 4:35

Doug--- I would think if your check was for $8000 and on stub it had itemized 14-6=8 I would talk to my CPA and simple deduc the 6000 as expensives and report only the $8000 as taxable income. Also you get a 15% depletion allowance on the 8000 so only $6800 is taxable.That is very high for pipeline cost !!!   you need some type document from EOG that show the deduction. Ask your CPA if EOG should give you a corrected 1099 or can CPA do it on your return.Ask CPA if 15% depletion on the 14,000 or only on the 8000?


landownerPermalink Reply by 5thGenTexan on March 20, 2013 at 4:58

I would think the depletion would be calculated on the gross amount of $14,000.

Enter the gross of $14,000, then deduct $6,000 of 1099 expenses and $2,100 of depletion for a net taxable amount of $5,900.

Permalink Reply by Chris on March 20, 2013 at 7:23

You can deduct expenses against a 1099 payment, the transportation is an expense.

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