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Permalink Reply by Sulley on September 30, 2008 at 3:50

There are tax advantages to selling minerals. Consult a tax professional, but selling a mineral interest is a capital gain, and if you owned it longer than 2 years, long-term gain, 15% federal tax. Leasing is taxed at ordinary rate, up to 36% federal. You get your money now, rather than wait 3 yrs for them to drill on a lease, then get payments monthly. Just throwing some reasons for selling vs. leasing. Everyone should consult a tax professional before making those decisions.

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Permalink Reply by barneyfife on September 30, 2008 at 7:02

If you are considering a sale, you might want to do it this year. When Obama is elected president, capital gains rate will go up. Congress could make the change retroactively, so waiting until 2009 might be risky. Federal rate could go from 15% to 28% or higher. This is why so many properties have been sold the past few years tyo take advantage of the 15%.

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