Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…
ContinuePosted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40
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AboutAs exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More |
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1. If you have expenses (like legal fees) to offset the income then it is very important that you file it as rents since you want to be able to take the expenses. I would file the Sch E with the income in rents and attach a copy of your lease and an explanation documenting the fact you contacted the company and they refused to re-issue the 1099.
2. If you have no expenses put it on the Sch E as royalties and press on. The end result is taxed the same as ordinary income. Be aware that you can not take depletion on the bonus money even if you put it under royalties.
Kathy