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March 9, 2025
Question

sale of a mineral land

  • March 9, 2025
  • 1 reply
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Do I need to reduce my basis by the depletions when I calculate the capital gain? my friend didn't provide me his closing statement. just the amount of cash he received. Can I use that amount of cash as his sale price?

    1 reply

    March 9, 2025

    Yes, your cost basis would be reduced by depletion allowable on the minerals. You can use the amount of cash received as the sale price.

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