# Lease bonus tax information
**URL:** https://www.mineralrightsforum.com/t/lease-bonus-tax-information/50513
**Category:** Oil and Gas Leasing Help
**Created:** [September 1, 2019, 8:35pm UTC](https://www.mineralrightsforum.com/t/lease-bonus-tax-information/50513 "2019-09-01T20:35:38Z")
**Posts on this page:** 8
**Page:** 1
### Author:  [@Claire\_Melvin](https://www.mineralrightsforum.com/u/Claire_Melvin)
#### Post date: [September 1, 2019, 8:35pm UTC](https://www.mineralrightsforum.com/t/lease-bonus-tax-information/50513/1 "2019-09-01T20:35:38Z")
Are any legal or professional costs incurred during the negotiation of the lease and lease bonus tax deductible?
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [September 2, 2019, 1:24pm UTC](https://www.mineralrightsforum.com/t/lease-bonus-tax-information/50513/2 "2019-09-02T13:24:02Z")
If you are negotiating directly with the company, then no professional costs. The lease bonus is income. My accountant does take a 22% depletion on it, but check with yours. If the lease is not drilled in three years (or the term of the lease), we have to pay it back.
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### Author:  [@Claire\_Melvin](https://www.mineralrightsforum.com/u/Claire_Melvin)
#### Post date: [September 2, 2019, 5:20pm UTC](https://www.mineralrightsforum.com/t/lease-bonus-tax-information/50513/3 "2019-09-02T17:20:09Z")
Thank you for your reply. I am wondering about the commission paid to the landman on my behalf.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [September 2, 2019, 6:41pm UTC](https://www.mineralrightsforum.com/t/lease-bonus-tax-information/50513/4 "2019-09-02T18:41:12Z")
You would have to ask your accountant.
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### Author:  [@TennisDaze](https://www.mineralrightsforum.com/u/TennisDaze)
#### Post date: [September 2, 2019, 7:52pm UTC](https://www.mineralrightsforum.com/t/lease-bonus-tax-information/50513/5 "2019-09-02T19:52:49Z")
If you pay direct legal expenses for review of the form by your own attorney or expenses for your own landman, then you can deduct those expenses against the income. Generally the lease bonus can be reported on Schedule E and the costs deducted there. For federal taxes, there is no depletion on the bonus. For state income tax, it will depend on your state law. Consult your accountant.
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### Author:  [@Claire\_Melvin](https://www.mineralrightsforum.com/u/Claire_Melvin)
#### Post date: [September 2, 2019, 11:44pm UTC](https://www.mineralrightsforum.com/t/lease-bonus-tax-information/50513/6 "2019-09-02T23:44:28Z")
Thank you for the information.
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### Author:  [@Claire\_Melvin](https://www.mineralrightsforum.com/u/Claire_Melvin)
#### Post date: [September 2, 2019, 11:45pm UTC](https://www.mineralrightsforum.com/t/lease-bonus-tax-information/50513/7 "2019-09-02T23:45:48Z")
Thank you for your reply.
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### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 7:26pm UTC](https://www.mineralrightsforum.com/t/lease-bonus-tax-information/50513/8 "2025-01-11T19:26:35Z")