Taxes (Texas) and 1099-misc

Oil and Gas Leasing Help
1

My 1099-MISC from EOG Resources (Texas) shows gross royalties in box 2 of ~$12,000. At the top there are three lines, none of which are shown in any other box on the 1099:

Other deductions (actually this is a small credit)= ~-$30

Taxes= ~$500

Net=$11,500 (not shown in any box on the 1099).

I do not believe the taxes are on the royalties - could they be for transportation facilities or plant processing that EOG built on site?

I am billed directly for taxes by the County/City and School district taxes, which I enter in my tax line. Can I also enter the ~$500?

Cheers, Mike.

2

Mike,

I also received a 1099-MISC from EOG. I am pretty positive the taxes your speaking of is for severance taxes levied by the state of Texas. Here is a link about Texas severance taxes from the RRC: http://www.rrc.state.tx.us/programs/og/severancetax.php

3

You can deduct those taxes as expense on Sched E.