DW

Box 1 is correct. You wouldn't get long term capital gains anyway. Box 7 would tell the IRS you are self-employed in the gas business and they would not only tax the income at your regular rate but they would be looking for social security and medicare taxes as well.

I'm going to assume this property is property you are already reporting on the Sch C, if so, that makes it a completely different story. Then other income is right and it should go on your schedule C. You still won't get cap gains rate though.