boening
New Member

How do I report the sale of an oil & gas working interest that was sold prior to any oil & gas expenses/production?

Some partners and I were Lessee's of some oil & gas leases that we held on to for over a year. We then sold all of the leases to a third party. No wells were drilled, so the only expenses we incurred were the cost of obtaining the leases (bonus payment to lessor).  I would think this would be a long-term capital gain, but I am not sure how to report it in Turbotax.