I received a 1099NEC as one of 6 heirs that in Box 1 reflected 94000 but we received only 58,000. Would the difference be in all expnses associated with that drilling operation and would that difference be deducted to determine our profit in the venture. Anyone publish an example of tax forms C/E with such an example? Chevron not much help.
You can verify the costs by looking at your check stub details. You can access missing check stubs on EnergyLink for free. Costs could be severance taxes; itemized cost deducts such as transportation, gathering, and marketing; and lease operating costs. Some operators will net the LOE charges against your revenues as an expense on your check detail. Others will send you a bill for the LOE charges to be paid. All this goes to Schedule C for individuals. You should consult with your CPA to properly prepare this form.
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