Last year, I leased my mineral rights to an oil and gas company. I received only one check from the company for the renting rights. I received two separate 1099-MISC forms from the company. One had only the Rents box (Box 1 ) filled in with the amount we were paid. The second form had only box 7 filled in with a smaller amount that I am not familiar with. Two questions. One, how do I file them if they came separate? Second, I do not understand where the amount in box 7 is coming from. I only received a one time check of the amount in box 1 for the rents. I have not received any royalty checks or anything similar for the income reported in box 7. What should I do?

asked 03 Apr '11, 20:14

David%20W.'s gravatar image

David W.
accept rate: 0%

edited 05 Apr '11, 00:04

Rick%201's gravatar image

Rick 1

I haven't dealth with lease mineral rights, so I am of limited help. However, I did find an AICPA Oil and Gas Practice Guide [link text] that may be helpful to you. It notes there are non-operating interests and operating interests in oil and gas wells. Since you received a 1099-MISC with rent and an amount in Box 7, it appears that you have an operating interest, which is otherwise known as a working interest. I am guessing the amount in the rent box is a "delay rental payment."

In any event, a call to the Company that issued the 1099 should enable you to find out what the amounts are for. It appears that page 8 of the PDF (see link above) will provide you with help on how to prepare your return.


answered 15 Apr '11, 03:06

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Rick 1
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Asked: 03 Apr '11, 20:14

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Last updated: 22 Jul '11, 08:22