Tax on lease bonus

We are in negotiations with Acsent..Wondering how much of my bonus check I have to give back to Uncle Sam.

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Permalink Reply by JK on December 13, 2017 at 5:20am

I always call my CPA for guidance.

It may be classified as capital gains.. as you will/may receive a 1099 form for your taxes..

You can sure ask Acsent, I'm sure they know..

Permalink Reply by Ed on December 13, 2017 at 8:03am

It's rental income and taxed as ordinary income.  So the tax % will depend on how much other income you have. 

Permalink Reply by Jon on December 13, 2017 at 10:45am

Yup

Permalink Reply by Jonathan H on December 16, 2017 at 12:20pm

I'm working on a lease also and have done similar calculations also.

Spoiler: it will be lots!

As the others say, check with a tax professional for exact details, however an income tax calculator will get you close; here is one example: https://www.taxact.com/tools/tax-bracket-calculator

Don't forget state taxes!

Permalink Reply by Nancy L Hossalla on December 16, 2017 at 1:41pm

Yes! It’s income. 

Permalink Reply by DJM on December 18, 2017 at 4:17am

Darlene, where is your property?

Permalink Reply by Darlene Nelson on December 18, 2017 at 4:26am

Jefferson County Ohio.

Permalink Reply by Jeffrey Yourkovich CPA, CMM on December 20, 2017 at 3:47am

My quick answer is usually 1/3 of the bonus amount.  A lease bonus is taxable as ordinary income.  There is much more to the answer though that involves estimating your taxes and all of your income for the year, potential tax planning options and the timing need to making estimated tax payments to get a more accurate picture and amount that will be due.  Contact your CPA to understand the tax ramifications and tax planning options when receiving gas and oil income.   If you dont receive the income in 2017, your tax answer will be completely different in 2018 with the impending legislation.

Permalink Reply by Darlene Nelson on December 20, 2017 at 5:05am

Thank You all

Permalink Reply by Corvette on March 22, 2018 at 1:43pm

What form do you use for estimated taxes and what percent do you pay the state?

Permalink Reply by Terry giuliani on March 23, 2018 at 3:36am

Corvette I make all my Federal Tax Payments through a web site EFTPS    Electronic Federal Tax  Payment System. Very user friendly system.

Permalink Reply by Corvette on March 23, 2018 at 3:48am

I will check it out, Thank you Terry.

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