# Texas CPA experienced with revenue

**URL:** https://www.mineralrightsforum.com/t/texas-cpa-experienced-with-revenue/79783
**Category:** Borden County, TX
**Created:** [February 8, 2025, 11:36pm UTC](https://www.mineralrightsforum.com/t/texas-cpa-experienced-with-revenue/79783 "2025-02-08T23:36:12Z")
**Posts on this page:** 5
**Page:** 1

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### Author: ![SunnySlope](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/779978/32.png) [@SunnySlope](https://www.mineralrightsforum.com/u/SunnySlope)
#### Post date: [February 8, 2025, 11:36pm UTC](https://www.mineralrightsforum.com/t/texas-cpa-experienced-with-revenue/79783/1 "2025-02-08T23:36:12Z")

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Should I hire a TX CPA familiar with MR revenue to do my taxes? I live in Michigan.

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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: [February 10, 2025, 3:50pm UTC](https://www.mineralrightsforum.com/t/texas-cpa-experienced-with-revenue/79783/2 "2025-02-10T15:50:43Z")

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Welcome to the forum. If you are a simple royalty owner, then you may not have to use a TX CPA. If you actively participating, then you may need more expertise for the more complex billing and tax consequences. Michigan does have oil and gas so you may be able to find a CPA familiar with the business. You need someone to put royalties in the correct schedule and file for the correct depletion-percentage or cost.

There are some other posts regarding this subject. Use the magnifying glass to search for “CPA”.

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### Author: ![SunnySlope](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/779978/32.png) [@SunnySlope](https://www.mineralrightsforum.com/u/SunnySlope)
#### Post date: [February 14, 2025, 11:17pm UTC](https://www.mineralrightsforum.com/t/texas-cpa-experienced-with-revenue/79783/3 "2025-02-14T23:17:15Z")

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Thank you for responding.

What is the difference/definition of a simple royalty owner vs. being an actively participating royalty owner?

I will search under CPA.

An add-on question:

My revenue statement has a column heading that states my monthly GROSS amount. It has a column titled TAX and a column heading NET amount: Gross minus Tax = Net. The Net figure is the dollar amount of my revenue check.

What are these deducted taxes? Are they applied as a pre-payment? Are they a county tax? State tax? Or federal tax?

Appreciate your time.

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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: [February 14, 2025, 11:51pm UTC](https://www.mineralrightsforum.com/t/texas-cpa-experienced-with-revenue/79783/4 "2025-02-14T23:51:13Z")

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Most people are just royalty owners under a lease, receive a 1099-MISC, and will report on Schedule E. If you received a 1099-NEC, then you are a working interest (unleased mineral owner) and that is reported on Schedule C. The tax is Texas severance tax which is deductible on Schedule E (or Schedule C). Operator pays and deducts from all royalty owners. Generally it is 4.6% of oil sales and 7.5% of gas sales. If any portion of the tax is federal or state withholding tax, then that would be noted on the 1099 form.

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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: [May 9, 2025, 11:36pm UTC](https://www.mineralrightsforum.com/t/texas-cpa-experienced-with-revenue/79783/5 "2025-05-09T23:36:38Z")

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