mzcpa2001
Level 1
02-07-2022
10:16 AM
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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
Labels
Level 11
02-07-2022
10:53 AM
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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
Level 15
02-07-2022
12:55 PM
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How did your client acquire this? Was there a time limit on that lease that is already in play?
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