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Andrealhrx
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I purchased my mother's mineral rights in 2007. I sold them in 2017. Where do I show this on my 2017 taxes? Is it capital gains? If sold for under 100,000 is it taxed?

 
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Anonymous
Not applicable

I purchased my mother's mineral rights in 2007. I sold them in 2017. Where do I show this on my 2017 taxes? Is it capital gains? If sold for under 100,000 is it taxed?

If you sell your mineral rights or oil & gas royalties, the IRS indicates that the sale can be treated one of two ways:


Your sell could be treated as the sale of business property which would be reportable as a section 1231 gain or loss reportable on form 4797.

Depending on how the property is held, the income or loss from the sale may be reportable as a capital gain or loss on Schedule D.

Make sure you discuss the sale with your attorney or CPA to ensure proper reporting on your tax return.

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