Question

Buyer of inherited mineral rights says they do not have to send 1099S because of depletion exemption, do i have to claim as inçome?

Forum|Forum|7 years ago
June 5, 2019
1 reply
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Have been waiting for1099s. Buyer says they aren't going to send one as they don't have to send beçause they have an exemption. Do I have to include as income

PatriciaV

Employee

Yes, even though you don't have Form 1099-S, you must still report all income earned during the year.

This transaction would be reported as the Sale of Business Property in TurboTax. Your basis would be the Fair Market Value of the mineral rights on the date of death. If the estate did not furnish this value, you may need to consult a mineral expert to help you determine your basis.

The easiest way to find this section of TurboTax is to use the Search box at the top right side of the TurboTax header. Click on the magnifying glass, type in "sale of business property", hit Enter, and click on "jump to sale of business property" to go directly to beginning of this topic.

Or go to Tools >> Topic Search. Type in "sale of business property", then click the topic in the list to go directly to the start of this section.

At the start of this section, choose "Sales of business or rental property that you haven't already reported". Then follow the prompts to enter the sale, basis, and other info for your property. Be sure to read the blue links ("Learn More") if you need help.

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