DMarkM1
Expert Alumni
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Deductions & credits

It appears you have a royalty interest which is not QBI.  You have actually relinquished the working interest to the company that is producing the natural gas. Here is the applicable extract from the link in the earlier response.  

 

"Rights to receive lease benefits include the right to receive bonus payments, delay rentals, and royalty payments. Rights to develop include the right to develop and right to produce the minerals. When the mineral estate owner grants a lease, the right to develop is relinquished and then vests with the lessee operator. This distinction is critical in classification of royalty interest (right to receive lease benefits) versus working or operating interest (right to develop the lease)."

 

So, if you are an owner in the company that is mining/producing the natural gas, then you would have a working interest.  

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