- Membership
- Certification
- Resources
- Events
- Community
- About
- Help
1042-S Royalties Clarification
December 11, 2025
Q. The payee is a foreign person and the property is land located in the U.S. Payments are for a Pore Space Lease (essentially the right to use subsurface pore space for storage, e.g., CO₂ sequestration). These are quarterly royalty payments tied to that lease. There are no long-term easements — it’s structured as a lease with royalties. With this information, what income code should be used on Form 1042-S?
A.
(Answered by IOFM's third-party tax expert)
The Form 1042-S code for royalties like…
Become A Member
Join IOFM today as a Professional, Business, or Enterprise Member — or upgrade your Starter Membership — to get access to this content and thousands of other Articles, Webinars, Expert Answers, Resource Downloads, and more!
Naturally, this forum doesn’t allow the kind of full information exchange necessary for the Institute of Finance & Management (IOFM) to provide legal advice and the Expert is not a tax attorney in any event. Please understand that the nature of our responses are limited by these constraints as well as the site’s Terms of Use. If you have further questions or suggestions about how we can improve IOFM, please let us know.
Ask The Expert is a member resource of IOFM and all advice provided is subject to site’s Terms of Use.
What are you waiting for?
