My husband and I leased some of our land to an oil company and received a $500 check for it. We have not received any money for any findings on our land. Will there be a 1099 issued for this since its not actual royalty income?

Irrespective of whether or not you receive a 1099 for the Royalty income from the Oil Company, you should still voluntarily report this income on your 2010 tax return.

Failure to knowingly report income could result in substantial penalties and thus we recommend that you report this Royalty Income, though it is only $500, an amount that is below the $600 limit amount that would trigger a reporting of a 1099 to you!

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