2017 Annual Claims filings

[Clay Diggins]

It's that time again. The August 31 deadline to make your required annual mining claims filings is only a month away.

As she does every year Ruby has compiled general guidelines and a graphic flow chart to help claim owners understand their annual obligations. If you are confused about the process or just want a refresher review these could help make the process clearer.

These are a free PDF download. Feel free to share, distribute or print these out as long as you retain the attribution.

General Guidelines

Flow Chart

Whatever you do don't be late. You will lose your claim if your filings aren't on time.

Heavy Pans

 

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[Rail Dawg]

Great stuff!

Love the flow chart!

 

[Asmbandits]

Every claim owner should have this saved somewhere, makes filing as simple as it can get!

 

[Prospector70]

I've really got to get on the other side of this process and get one..

What are the tax benefits of being a miner? Can I deduct Fuel and equipment?

 

[KevinInColorado]

I've really got to get on the other side of this process and get one..

What are the tax benefits of being a miner? Can I deduct Fuel and equipment?

There is plenty of gold bearing land available to claim in Colorado so you can do it for less than $250 out of pocket.

Tax benefits? Talk with your tax advisor or read the books. My understanding is at you can deduct everything as business expenses if you are running a gold prospecting business. This doesn't require owning a claim though. Also, if you don't ever make a profit, the IRS will "disallow" the tax deductions you are getting from he expenses by declaring that it's just a hobby (not a legit business).

 

[okbasspro]

Already in the mail

 

[Strebs]

I've really got to get on the other side of this process and get one..

What are the tax benefits of being a miner? Can I deduct Fuel and equipment?

Yes can deduct most mining expenses, only fuel used for off road applications though. Look into schedule c loss n profit. Allowed two years of being in loss but u must claim the claim still in "development" stage. Have a tax professional to guide you af least the first year cause nobody wants an audit.

 

[goldenmojo]

As Strebs says you can lose money the first two years but must make a profit after that for at least three years otherwise it is deemed a hobby and not a business as I understand it. Of course the purchase of a new pan in the third year might be all it takes to tip you over into the loss column. Good Luck.

 

[Rail Dawg]

As Strebs says you can lose money the first two years but must make a profit after that for at least three years otherwise it is deemed a hobby and not a business as I understand it. Of course the purchase of a new pan in the third year might be all it takes to tip you over into the loss column. Good Luck.

You're close except you can shut the business down after two years and start a different business.

No need to show 3 years of profit.

Get all your equipment in the first 2 years, write it off and then move on.

 

[goldenmojo]

So your saying buy the pan in the second year....

 

[Rail Dawg]

So your saying buy the pan in the second year....

Yep! lol

There are about 30 assorted deductions a miner can take.

Losses go on your Form 1040 and are taken directly off your other income.

An audit is simply a way to show the IRS what a good record-keeper you are.

Don't fear an audit. That's what they want... for you to be afraid to deduct what is rightfully yours to deduct.

"It is against the law to EVADE taxes. It is not against the law to AVOID taxes."

 

[Garrote Gold]

flow chart looks good, but here in california, if you choose not to file small claim waiver and just pay the $155 for 20 acre placer claim, you do not need to file additional notice of intent to hold -unless its newly located or changed hands.....

 

[Clay Diggins]

flow chart looks good, but here in california, if you choose not to file small claim waiver and just pay the $155 for 20 acre placer claim, you do not need to file additional notice of intent to hold -unless its newly located or changed hands.....

Clueless.

You need to read the law before misinforming your fellow miners. There are two (2) annual requirements to hold your mining claim under the grant. One is a Public Record and the other is an informational filing with the BLM.

Here is the text and a link to the Federal laws on mining claims. This applies to all Mining Claims on the public lands.

"43 U.S.C. §1744. Recordation of mining claims

(a) Filing requirements
The owner of an unpatented lode or placer mining claim located prior to October 21, 1976, shall, within the three-year period following October 21, 1976 and prior to December 31 of each year thereafter, file the instruments required by paragraphs (1) and (2) of this subsection. The owner of an unpatented lode or placer mining claim located after October 21, 1976 shall, prior to December 31 of each year following the calendar year in which the said claim was located, file the instruments required by paragraphs (1) and (2) of this subsection:

(1) File for record in the office where the location notice or certificate is recorded either a notice of intention to hold the mining claim (including but not limited to such notices as are provided by law to be filed when there has been a suspension or deferment of annual assessment work), an affidavit of assessment work performed thereon, on 1 a detailed report provided by section 28–1 of title 30, relating thereto.

(2) File in the office of the Bureau designated by the Secretary a copy of the official record of the instrument filed or recorded pursuant to paragraph (1) of this subsection, including a description of the location of the mining claim sufficient to locate the claimed lands on the ground.

(c) Failure to file as constituting abandonment; defective or untimely filing

The failure to file such instruments as required by subsections (a) and (b) of this section shall be deemed conclusively to constitute an abandonment of the mining claim or mill or tunnel site by the owner;"

Educate yourself and Prosper!

Heavy loss of Mining Claims

 

[Rail Dawg]

Clueless.

You need to read the law before misinforming your fellow miners. There are two (2) annual requirements to hold your mining claim under the grant. One is a Public Record and the other is an informational filing with the BLM.

Here is the text and a link to the Federal laws on mining claims. This applies to all Mining Claims on the public lands.

"43 U.S.C. §1744. Recordation of mining claims

(a) Filing requirements
The owner of an unpatented lode or placer mining claim located prior to October 21, 1976, shall, within the three-year period following October 21, 1976 and prior to December 31 of each year thereafter, file the instruments required by paragraphs (1) and (2) of this subsection. The owner of an unpatented lode or placer mining claim located after October 21, 1976 shall, prior to December 31 of each year following the calendar year in which the said claim was located, file the instruments required by paragraphs (1) and (2) of this subsection:

(1) File for record in the office where the location notice or certificate is recorded either a notice of intention to hold the mining claim (including but not limited to such notices as are provided by law to be filed when there has been a suspension or deferment of annual assessment work), an affidavit of assessment work performed thereon, on 1 a detailed report provided by section 28—1 of title 30, relating thereto.

(2) File in the office of the Bureau designated by the Secretary a copy of the official record of the instrument filed or recorded pursuant to paragraph (1) of this subsection, including a description of the location of the mining claim sufficient to locate the claimed lands on the ground.

(c) Failure to file as constituting abandonment; defective or untimely filing

The failure to file such instruments as required by subsections (a) and (b) of this section shall be deemed conclusively to constitute an abandonment of the mining claim or mill or tunnel site by the owner;"

Educate yourself and Prosper!

Heavy loss of Mining Claims

Clay Diggins the flow chart doesn't show the requirement to send a copy of the Notice of Intent to Hold filed at the county to the BLM.

Paragraph (2) of what you posted says that we have to file with the BLM what was sent to the county in Paragraph (1).

Am I reading too much into this?

The folks at the BLM in Reno said no need to send them an NOI from the county if maintenance fees are paid on time.

Thanks.

 

[Clay Diggins]

Clay Diggins the flow chart doesn't show the requirement to send a copy of the Notice of Intent to Hold filed at the county to the BLM.

Paragraph (2) of what you posted says that we have to file with the BLM what was sent to the county in Paragraph (1).

Am I reading too much into this?

The folks at the BLM in Reno said no need to send them an NOI from the county if maintenance fees are paid on time.

Thanks.

You read the chart right. When the appropriation bill allowing you to skip your annual labor if you pay money is passed they include a clause that "Such claim maintenance fee shall be in lieu of the assessment work requirement contained in the Mining Law of 1872 and the related filing requirements contained in section 1744".

So although you still need to record a Notice of Intent to hold into the public record each year your maintenance fee payment substitutes for the required informational notice to the BLM as well as the statutory requirement to perform $100 worth of labor. Keep in mind that this is not a mining law but instead a budget item that is renewed with each Appropriations Act - things can change if Congress doesn't act to keep the maintenance fee current in each Appropriations Act.

You should also be aware that there are several other portions of the Mining Act that require an annual public record be maintained. This may seem like a point with no purpose until you are sued by an adverse claimant, seek investors, sell a claim, claim a right to compensation in court or apply for a patent. At that point you will come to understand why a Certifiable, complete, current public record must still be maintained. Even if you don't need to file a copy of that record with the BLM.

Ruby makes up the flow chart and general guidelines each year to help miners meet their obligations. Feel free to question the "why" of each part of the chart. The idea of these aids is to inform and educate.

Please understand there are several circumstances that are not even mentioned in these aids like how to file if you don't have physical access to your claim, you are on active duty overseas, you have a first half patent certificate or your claim case status is under review for wilderness/National Park etc. These aids cover 99% of the possible needs of claim owners but if you have special circumstances like those mentioned above you will need to dig a little deeper.

The point that every claim owner needs to understand is that for every year they intend to maintain their claim they have to make a public record and a BLM informational filing no matter what their circumstance.

Heavy Pans

 

[Rail Dawg]

Thanks for this great post Clay Diggins!

It has taken me a LOT of study and in-the-field-training to get this far.

Posts such as yours are very important.

I appreciate what you do for this forum and for mining in general.

 

[ELKAHOLIC]

I just located a claim in July. If I send in a waiver with my intent to hold form is the intent to hold form the only one I need to file with the county? Also, when would my affidavit of assetment work need to be filed? Would it be the end of December of 2017 or end of December 2018? And that needs to be filed with the county also?

 

[Clay Diggins]

Follow the chart ELKAHOLIC. If you submit the current free small miners waiver form on or before August 31 you have until December 30th (NOT the end of the year!) to record a Notice of Intent to Hold at the County Recorder and file a copy of that public record with the BLM State office by December 30.

In 2018 you will need to do your assessment work and record your affidavit of work at the County Recorder then file a copy of that public record with the BLM State office by December 30, 2018.

Check your State laws on making your annual public record. The dates vary in some States. I seem to recall in Montana you have until September 30. Don't trust me on that date - look it up. The dates on the chart are for your your Federal BLM informational filing.

Heavy Pans

 

[Clay Diggins]

15 days left. The clock is ticking. Don't lose your claim because of a paperwork deadline!

Heavy Pans

 

[Rail Dawg]

15 days left. The clock is ticking. Don't lose your claim because of a paperwork deadline!

Heavy Pans

Mr. Diggins how soon after Sep 01 is it reasonable to locate on a claim that hasn't been paid?

The law is the law.

If I didn't pay the fees I would expect others to locate my claims.