landowner

Tax Deduction

Does anyone know who I would contact to find out if you can take a loss on income tax for royalties held in suspension by BHP? I've search the IRS site - but can't seem to find anything. My CPA mentioned this as a possibility.

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Permalink Reply by Aubrey C. Sanders, Jr. on March 20, 2013 at 5:18

A very good question to which I am also seeking answer. I am trying to contact my CPA. When I get answer I will post here. Good luck to us both


landownerPermalink Reply by adubu on March 21, 2013 at 4:42

I doubt if you can take a loss on income that is in suspension since it's basically income that is deferred  which one day will be taxable when received. The question is Why are royalty payment held in suspension? Have they just not cured your Title to the minerals or what? If BHP has received payment for oil or gas sold in market they must pay you according to your lease if your title is clear and you are owner.

1kw6x71km1v37Permalink Reply by 1kw6x71km1v37 on March 21, 2013 at 5:10

You CPA is probably referring to writing off what you are owed by the oil company as a  theft/unpaid bad debt. There are regs for that at irs.gov. I'm wondering at this point why your CPA has you in the dark. Good luck.


landownerPermalink Reply by smith1 on March 21, 2013 at 5:14

CPA doesn't have me in the dark, said he is researching


landownerPermalink Reply by adubu on March 21, 2013 at 6:14

smith1---- Why are the payments is suspension?????

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