sale of a mineral land

[IllesFarmer]

Do I need to reduce my basis by the depletions when I calculate the capital gain? my friend didn't provide me his closing statement. just the amount of cash he received. Can I use that amount of cash as his sale price?

[ThomasM125]

Yes, your cost basis would be reduced by depletion allowable on the minerals. You can use the amount of cash received as the sale price.