One other consideration for you: When the property was "inherited" from your father, was his estate enough to generate a federal or even state (Oklahoma) estate tax return? If so, you should have a copy of that in your permanent papers. Minerals on an estate return usually are valued at about 3-5 years of monthly average revenue if they are not material enough to necessitate a formal evaluation. So, $200/mo avg could have been on the estate tax return at say $12,000. If so, that $12,000 is considered "basis" for those minerals and can be used to offset or reduce the amount of income you'll report from production or a lease. Go back and talk with your accountant, might be able to get some deduction at least on part of those amounts if you can prove you had a taxable basis from the estate tax return of your father.
Hello, Last year I included it in my gross income.