mineral rights in OK

[Marion1E]

Hi again,
My mom has mineral rights (no land) in Oklahoma. An oil company rented
those rights for $40,000 last year which unfotunately was spent on
alzheimer care; but this is beside the point. She lives in
Albuquerque, NM. Does she has to do an Oklahoma return, too?
Thank you for all your input,

 

[Frank S. Duke, Jr.]

(e-mail address removed),

Hi again,
My mom has mineral rights (no land) in Oklahoma. An oil company rented
those rights for $40,000 last year which unfotunately was spent on
alzheimer care; but this is beside the point. She lives in
Albuquerque, NM. Does she has to do an Oklahoma return, too?
Thank you for all your input,

You bet. The income was earned in Oklahoma. Most likely, she can take a
credit for the OK tax paid on an NM return. Good thing she does not live in
TX.

Uncompensated advice guaranteed correct or double your money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

 

[Harlan Lunsford]

You bet. The income was earned in Oklahoma. Most likely, she can take a
credit for the OK tax paid on an NM return. Good thing she does not live in
TX.

Why? Texas doesn't have income tax. However my client who has such
income does have to pay Alabama income tax on said proceeds.

ChEAr$,
Harlan Lunsford, EA n LA

 

[Seth]

Why? Texas doesn't have income tax. However my client who has such
income does have to pay Alabama income tax on said proceeds.

And doesn't get a credit, due to living in TX. (Sure, it's better
not to pay taxes than to pay them and get a partial credit back.)

Seth