By LeRoy L. Metz, II, Esq. and Larry S. Blair, Esq.
In Publications

The taxation of income from natural resources is one of the most complex areas of the federal tax law. Especially complex are issues surrounding the taxation of oil and gas income received by property owners.

Generally, instead of selling the property, the property owner will receive an upfront cash payment from a driller for the right to explore and drill on the owner’s property. This payment is ordinary income in the year it is received.

Print Friendly
Recent Posts