Having received a 1099 form from Antero, I have a question: In box 1 "RENTS" they show an amount, Box 2 shows Royalties, can anyone explain box 1?. I can understand the Royalties but have no idea about why the amount shown for rents, UNLESS> I did sell some royalty interest could this be it??
I think “rents” would be bonus money for signing a lease. Could that be it?
Traditionally that is correct. Rent & Royalties are taxed differently and are assigned different lines on the tax return forms.
Bingo, You guy's always come through. In Past years I don't think Bonus $ was listed as rent, could be wrong, but anyhow you answered my question. Thanks.
Arnold, as I understand it, the bonus is a full rental for the amount of the lease, paid in a lump instead of yearly or quarterly the way the old leases did it. You might have a lease calling for $25 per acre per quarter, paid in advance. Every 3 months you would get your check for $25 times your acreage, and at the end of the 5 year (or whatever) term, either they would have drilled a well or the lease would be void, if they paid on time. Now they pay it all ahead of time, and it is a paid up lease, for 5 years or whatever length of time.
As I understand it!
I had the same question…thanks for that Nancy… .I left a message on their 1099 line …Arnold, how we you? I hope your well in Utah. …they have staked out the wellpads location on my property & their planning to clear as the issue is to not disturb the WVDEP’S ‘bats’ but seeing no clearing this winter yet.
Ancel, I have not seen it worded as rent in the past, so was surprised when I received my 1099, as you say "thanks again NANCY". Getting paid on some of my wells, waiting for D.O.'s on others. Woke up this morning to over a foot of snow, first time in a long time that schools have been closed, I think only because it's supposed to snow all day and into tonight. Maybe the planning of your well pads will start in the spring, hope so.
Glad to help. Wonder why they seem to have changed the way they report bonus payments? Stay warm in all that snow, Arnold!
Rents seems to be used for a lot things other than royalties. They are improving the road past my place . They paid me for installing Colverts. Shows up on 1099 as “rents”.
Just received a letter from Antero concerning their 1099 form that was sent to me last week, it now say's to disregard the previous 1099 form, "the enclosed revision form now reflects the correct gross royalty paid in 2015, Nothing about rents on the revision", so I chucked the original as they told me.