Long-Term Capital Gains Federal Tax Question

I sold non-producing minerals for $350,000 in 2013 that I inherited in 1984 (inventory value $1).

I did not receive a 1099-B or 1099-S Form from the Buyer (an investment firm) or from the IRS.

My accountant filed an extension back in April 2014 and informed me today that I owe $57,116 with Penalty & Interest (roughly 16.2% of $355,640) but I read on the IRS Site (http://www.irs.gov/taxtopics/tc409.html) that if your "ordinary income tax bracket" is 10% or 15% then 0% is owed on "long-term capital gain" (if single and asset sold for less than $400,000).

Social Security Income for 2013 = $8,400

Royalty Income for 2013 = $6,891 (after property tax & depletion allowance deductions)

Long-Term Capital Gain = $349,999 (after cost basis deduction)

Also, are the sale of minerals suppose be listed under section 1245 or 1250 (site below for Form 4797 Instruction's)


IRS cannot help with Schedule D question regarding Long-Term Capital Gain on sale of non-producing minerals in 2013.

I believe I'm suppose to use Form 4797 (see 1st post) or do I use another Form (like 8949).

Need help today since I'm need to submit my return by 10/15/14.