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3 Responses to “How is a payment for oil/gas drilling land damages taxed?”
May 31st, 2009 at 9:20 pm
Read IRS pub 544.
If you spent money to repair the damage, then you subtract that from the 1099 money.
May 31st, 2009 at 9:20 pm
the oil/gas company will send you a Form 1099 with the gross amount they paid you. You will claim this as income.
May 31st, 2009 at 9:20 pm
That's income, taxable just as any other income.