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mzcpa2001
Level 1
February 7, 2022
Question

sale of "unpatented mining claims"

  • February 7, 2022
  • 2 replies
  • 16 views

Client sold "unpatented mining claims" to an unrelated third party.  Is the gain capital or ordinary?  Does IRC section 617 apply?

Thank you,

Martin Zeldin, CPA

Tucson, AZ

This topic has been closed for replies.

2 replies

PhoebeRoberts
PhoebeRobertsIntuit Community Champion
Intuit Community Champion
February 7, 2022

So the internet says that an "unpatented mining claim" is essentially a mineral leasehold on Federal land. 

Personally, I'd treat it as the sale of any other mineral leasehold. I know the rules for sales of oil & gas leaseholds, but if you're looking at Sec 617 (which appears to be the non-O&G equivalent to G&G), presumably it's some other mineral that your guy was hoping to extract.

    qbteachmt
    qbteachmt
    Level 15
    February 7, 2022

    How did your client acquire this? Was there a time limit on that lease that is already in play?

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