# Showing tax loss

**URL:** https://www.mineralrightsforum.com/t/showing-tax-loss/59482
**Category:** Accounting and Taxes
**Created:** [November 3, 2020, 11:59am UTC](https://www.mineralrightsforum.com/t/showing-tax-loss/59482 "2020-11-03T11:59:35Z")
**Posts on this page:** 5
**Page:** 1

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### Author: ![SSS](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/sss/32/20804_2.png) [@SSS](https://www.mineralrightsforum.com/u/SSS)
#### Post date: [November 3, 2020, 11:59am UTC](https://www.mineralrightsforum.com/t/showing-tax-loss/59482/1 "2020-11-03T11:59:35Z")

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We just sold a lease at a loss and want to show that on the tax statement. What information will our accountant need? Just the original bill of sale and this recent bill of sale?

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### Author: ![M\_Barnes](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/m_barnes/32/10942_2.png) [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [November 3, 2020, 3:29pm UTC](https://www.mineralrightsforum.com/t/showing-tax-loss/59482/2 "2020-11-03T15:29:26Z")

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Ask your accountants what they will need. They are the professional and will know what is required.

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### Author: ![TennisDaze](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/t/dbc845/32.png) [@TennisDaze](https://www.mineralrightsforum.com/u/TennisDaze)
#### Post date: [November 3, 2020, 5:44pm UTC](https://www.mineralrightsforum.com/t/showing-tax-loss/59482/3 "2020-11-03T17:44:32Z")

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Among other things, your accountant will need to know your adjusted basis in these minerals, which will include a reduction for depletion over time. Percentage depletion expense on your tax return reduces the mineral basis, but not below zero. This basis reduction is calculated property-by-property, depending on the related royalties for each tract. If this is a working interest, then you will have other factors affecting basis. Your accountant can help you figure this out.

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### Author: ![SSS](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/sss/32/20804_2.png) [@SSS](https://www.mineralrightsforum.com/u/SSS)
#### Post date: [November 3, 2020, 11:29pm UTC](https://www.mineralrightsforum.com/t/showing-tax-loss/59482/4 "2020-11-03T23:29:08Z")

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Thank you for the information.

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [February 1, 2021, 11:59am UTC](https://www.mineralrightsforum.com/t/showing-tax-loss/59482/5 "2021-02-01T11:59:37Z")

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