Oil, Gas, or Other Mineral Rights Lease

Report leased oil, gas, or other mineral rights and income produced by the lease in Schedule A. 

Oil, Gas, or Mineral Lease: Examples

For You, Your Spouse, and Your Dependent Children

Schedule A

Report a lease in Schedule A if its value was more than $1,000 at the end of the reporting period, or if the lease produced more than $200 in income during the reporting period.

Block A: Indicate that the asset is a lease and provide: (a) the location of the land (city and state); (b) the resource being extracted under the terms of the lease; and (c) the name of the lessee (i.e., company extracting resources and paying royalties).

Block B: Report the value of the lease by marking the appropriate column.

Block C: Report the total amount of income that was produced during the reporting period by marking the appropriate “Amount” column. If the amount of income is more than $200, you also need to report the type of income by marking the applicable “Type” column(s). Leases normally produce “rent and royalties” income, but in some cases they may also produce dividends, interest or capital gains. If the lease produces any other type of income, provide the exact amount in the column labeled “Other Income” and describe the type of income (e.g., “signing bonus” or “upfront payment”).

Click Here for Frequently Asked Questions  

 

This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.