Sale of Oil and Gas Assignments.

[taxu2]

Client sold his interest in his oil and gas assignments, in which the income from, was previously reported on Sch C. How does this sale need to be reported? 

[Skylane]

Form 4797?

[taxu2]

Thanks. So the oil lease would be sale of non depreciable asset? How is the basis determined? 

[qbteachmt]

Schedule C = working the operation as a business. So, is he still Operating and sold an overriding interest? Or, did he only ever have the interest? What part was the Sched C operation?

[taxu2]

He is no longer operating. He owned a 1/3 of a single lease and sold his part for 6000.00.