Mineral Rights Expenses from 1099-MISC to Schedule E

Accounting and Taxes
1

Hello,

Quick question on filling out the Schedule E.

I received a 1099-MISC that includes the following information all reported to the IRS:

Gross revenue (goes to line 4 Sch E)
Taxes (goes to line 16 Sch E)
Expenses (told this was made up of production, gathering, etc...)
Net

I also think I can take a 15% depletion deduction to go on line 18 Sch E.

What I am not sure about is what line to put the expense number that seems to be a mixture of production and marketing expenses. Has anyone experience this before? And what did you do? I was considering Management Fees, line 11, or Other, line 19.

This is my second year with inherited mineral rights. I am considering amending my last return for a few reasons. One, I reported the expense number on the depletion line. We are not dealing with big numbers but I want it correct.

Thank you for your time!

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Depletion is calculated on the Gross Revenues. The deducts are for expenses incurred and charged by operator. They are not management fees.

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