I inherited mineral rights from my deceased grandfather, then sold them immediately. How to report this. He died 34 years ago. The company gave me a 1099-misc

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The Company sent me a 1099 misc and Filed it under Rents. I have been told this is incorrect. I never received rental income from these mineral rights. This was inheritance.

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MichaelL1Answer

Level 15

If you never received any income in 2016 from this company then you should contact the issuer of the 1099Misc and let them know that this was sold over 30 years.

They should issue you a corrected 1099Misc with $0 income if that is the case.

The IRS matches these documents to the tax return is the issue here.

MichaelL1Answer

Level 15

If you never received any income in 2016 from this company then you should contact the issuer of the 1099Misc and let them know that this was sold over 30 years.

They should issue you a corrected 1099Misc with $0 income if that is the case.

The IRS matches these documents to the tax return is the issue here.

derby2003Author

Level 2

the mineral rights November 2015, and received a lump sum payment for the sale of the mineral rights in January 2016. They sent me a 1099MISC and entered the full amount of the sale in Box 1 under rents. This was very confusing, as I never received any rental income! A one time sale was the only income I received from this company. I really appreciate your help!