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pikecoman46
New Member

I had mineral rights lease income this year, paid 3 years in advance. i listed the total amount but will zero income next two years cause a problem?

 
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Accepted Solutions
MichaelL1
Level 15

I had mineral rights lease income this year, paid 3 years in advance. i listed the total amount but will zero income next two years cause a problem?

You are a cash basis taxpayer so report income when received.  Which you are doing.

Just document your tax file as to what took place, should they ask you.

It is however very common for oil or other minerals to produce one year and not the next.

View solution in original post

1 Reply
MichaelL1
Level 15

I had mineral rights lease income this year, paid 3 years in advance. i listed the total amount but will zero income next two years cause a problem?

You are a cash basis taxpayer so report income when received.  Which you are doing.

Just document your tax file as to what took place, should they ask you.

It is however very common for oil or other minerals to produce one year and not the next.

View solution in original post

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