# Lease payment tax status
**URL:** https://www.mineralrightsforum.com/t/lease-payment-tax-status/43612
**Category:** Doddridge County, WV
**Created:** [March 26, 2019, 4:58pm UTC](https://www.mineralrightsforum.com/t/lease-payment-tax-status/43612 "2019-03-26T16:58:38Z")
**Posts on this page:** 3
**Page:** 1
### Author:  [@Fred4](https://www.mineralrightsforum.com/u/Fred4)
#### Post date: [March 26, 2019, 4:58pm UTC](https://www.mineralrightsforum.com/t/lease-payment-tax-status/43612/1 "2019-03-26T16:58:38Z")
I received a payment from BB Land for lease of oil and gas rights to land in West Va. I need to know whether this initial payment is taxable as royalties, miscellaneous, or something else. Also, weirdly, I cannot find their tax identification number or phone number. Any help much appreciated. Fred Reed [jetpossum@gmail.com](mailto:jetpossum@gmail.com)
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### Author:  [@Nancy\_Mosley](https://www.mineralrightsforum.com/u/Nancy_Mosley)
#### Post date: [March 27, 2019, 1:53am UTC](https://www.mineralrightsforum.com/t/lease-payment-tax-status/43612/2 "2019-03-27T01:53:21Z")
If you are referring to a bonus payment for signing a lease, I think (not an accountant!) that it is considered rental payment, not royalty. In the olden days, many leases would start with a period of rent, a certain amount per month or per quarter, until the term of the lease was up (maybe 3 years) or until a well was drilled and producing. Then the companies started paying the full amount up front, calling it a Paid Up Lease. That is my understanding. No help on BB information.
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### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 4:41pm UTC](https://www.mineralrightsforum.com/t/lease-payment-tax-status/43612/3 "2025-01-11T16:41:40Z")