I leased my mineral rights in Lea County last year. Can someone tell me what IRS form to file on the taxes owed? Also for NM taxes owed.
This is my first time to lease and need some help with the legal filing.
Leasing mineral rights is not depreciable (no depletion allowance like with royalties) so depending on your other taxable income depends on what IRS form you use.
Are you a resident of New Mexico? If not I don’t know if you need to file a nonresident tax form or not. Probably do since it’s New Mexico property.
The IRS and the State of New Mexico tax department can answer these questions in depth for you.
Our CPA uses form 1040 for the IRS
And for the State of NM, Form PIT-1.
My CPA indicated I only have to pay taxes on production in New Mexico. I know they want to raise their tax revenue. I have never received a 1099 for lease amounts.
You still have to declare the lease money on your federal taxes. I assume this lease money would be listed on Schedule E of your 1040.
Of course. I was referring to state income tax.