Question about state taxes for the out of state landowner - GoHaynesvilleShale.com2024-03-29T05:23:41Zhttps://gohaynesvilleshale.com/forum/topics/2117179:Topic:91553?commentId=2117179%3AComment%3A254725&x=1&feed=yes&xn_auth=noJust a layman at this, but ju…tag:gohaynesvilleshale.com,2008-11-22:2117179:Comment:2547252008-11-22T21:32:17.887ZMartinhttps://gohaynesvilleshale.com/profile/jcmagness
Just a layman at this, but just got through with my father's estate. No federal estate taxes unless the net value is several million dollars. If there is a La. inheritance tax, the value of the LA portion was below the tax threshold. Real estate in La. will require an adjunct succession. To be sure check with a CPA in your state of residence and in LA. But you do need a will in insure that your estate is distributed as you wish.
Just a layman at this, but just got through with my father's estate. No federal estate taxes unless the net value is several million dollars. If there is a La. inheritance tax, the value of the LA portion was below the tax threshold. Real estate in La. will require an adjunct succession. To be sure check with a CPA in your state of residence and in LA. But you do need a will in insure that your estate is distributed as you wish. Yes the reason the money is s…tag:gohaynesvilleshale.com,2008-11-21:2117179:Comment:2490852008-11-21T01:57:45.435ZKathy Morganhttps://gohaynesvilleshale.com/profile/KathyMorgan
Yes the reason the money is self employment is because the recipient is in the oil business. The way I read he question it sounded like a business transaction. But if this is his personal property that he is selling (not leasing, see earlier discussion on the difference) he claims capital.
Yes the reason the money is self employment is because the recipient is in the oil business. The way I read he question it sounded like a business transaction. But if this is his personal property that he is selling (not leasing, see earlier discussion on the difference) he claims capital. Thanks for the reply, Kathy.…tag:gohaynesvilleshale.com,2008-11-20:2117179:Comment:2466232008-11-20T02:55:10.953ZMattiehttps://gohaynesvilleshale.com/profile/Mattie
Thanks for the reply, Kathy. Just got this.<br />
<br />
On Question A: So, is the fact that the money goes to an O&G operator the primary reason it's considered ordinary income? Or, are there other issues? Had not heard that individuals in their own field could not declare "capital gains" on their assets.
Thanks for the reply, Kathy. Just got this.<br />
<br />
On Question A: So, is the fact that the money goes to an O&G operator the primary reason it's considered ordinary income? Or, are there other issues? Had not heard that individuals in their own field could not declare "capital gains" on their assets. Mattie,
From the situation g…tag:gohaynesvilleshale.com,2008-11-14:2117179:Comment:2293992008-11-14T23:57:15.969ZKathy Morganhttps://gohaynesvilleshale.com/profile/KathyMorgan
Mattie,<br />
<br />
From the situation given I would have to say the following:<br />
<br />
Question A: This is ordinary income subject to self employment no matter what the percentages or rights transfered because the person getting the money is an O&G operator and therefore "in the business" of oil. Capital gains is not a choice.<br />
<br />
Question B: Louisiana is going to get their share no matter what kind of income it is, so yes a La return would have to be filed.
Mattie,<br />
<br />
From the situation given I would have to say the following:<br />
<br />
Question A: This is ordinary income subject to self employment no matter what the percentages or rights transfered because the person getting the money is an O&G operator and therefore "in the business" of oil. Capital gains is not a choice.<br />
<br />
Question B: Louisiana is going to get their share no matter what kind of income it is, so yes a La return would have to be filed. Kathy,
Here is a good one fo…tag:gohaynesvilleshale.com,2008-11-14:2117179:Comment:2293482008-11-14T23:33:51.360ZMattiehttps://gohaynesvilleshale.com/profile/Mattie
Kathy,<br />
<br />
Here is a good one for you:<br />
<br />
1) O&G operator owns mineral lease for greater than 3 years<br />
2) Lease has 1/6th royalty reservation by mineral owners<br />
3) O&G operator assigns 25% ORRI to 3rd parties, less existing 1/6th royalty encumbrance on leases by mineral owners<br />
4) O&G operator then assigns 75% n.r.i. lease to 3rd party O&G company, for cash consideration, reserving NO mineral interests of any kind (ORRI or WI) in the lease....only bonus consideration.<br />
5) O&G…
Kathy,<br />
<br />
Here is a good one for you:<br />
<br />
1) O&G operator owns mineral lease for greater than 3 years<br />
2) Lease has 1/6th royalty reservation by mineral owners<br />
3) O&G operator assigns 25% ORRI to 3rd parties, less existing 1/6th royalty encumbrance on leases by mineral owners<br />
4) O&G operator then assigns 75% n.r.i. lease to 3rd party O&G company, for cash consideration, reserving NO mineral interests of any kind (ORRI or WI) in the lease....only bonus consideration.<br />
5) O&G operator is a resident of Texas, not LA.<br />
<br />
Question A: Since the O&G operator retained no mineral interest after assigning/selling the lease to 3rd party O&G operator, does he get "capital gains" treatment? My understanding is that if he retains no interest in minerals, then it is of the same effect as a landowner/mineral owner selling his/her minerals outright rather than a lease.....which also would get "capital gains" treatment, correct?<br />
<br />
Question B: Does the Texas residency still require payment of state income tax in LA, or is it based on Texas income tax rates, which is -0-??<br />
<br />
Thanks,<br />
Mattie If I won property with minera…tag:gohaynesvilleshale.com,2008-09-14:2117179:Comment:1237102008-09-14T15:44:31.925ZVSC DeSoto Southhttps://gohaynesvilleshale.com/profile/ValerieS
If I won property with minerals under lease, pass away in 2 years, and leave my children the land, will my children pay inheritance tax in LA and to the federal government?<br />
Is their anyway process I can work on now, to avoid this if it will happen, or to lessen the amount due?<br />
Someone recently suggested I take out enough insurance to cover any taxes due, due to the transfer of ownership. To see a tax professional to estimate taxes due under different scenarios then buy that amount of insurance…
If I won property with minerals under lease, pass away in 2 years, and leave my children the land, will my children pay inheritance tax in LA and to the federal government?<br />
Is their anyway process I can work on now, to avoid this if it will happen, or to lessen the amount due?<br />
Someone recently suggested I take out enough insurance to cover any taxes due, due to the transfer of ownership. To see a tax professional to estimate taxes due under different scenarios then buy that amount of insurance + wiggle room, so that the heirs have the money to pay taxes and can receive the land and other properties without needing to shell out money or risking losing it to tax -misadminisration. Would this be a good idea? In that case I would say it w…tag:gohaynesvilleshale.com,2008-09-01:2117179:Comment:1085312008-09-01T00:39:53.085ZKathy Morganhttps://gohaynesvilleshale.com/profile/KathyMorgan
In that case I would say it would be ordinary income. Capital gains tax brackets normally only apply if you retain no hold on the property or "substanstially similiar" property. Of course you should get someone to look at the contract and give you specific advice on this situation, but from what you have said it sounds like ordinary income to me.
In that case I would say it would be ordinary income. Capital gains tax brackets normally only apply if you retain no hold on the property or "substanstially similiar" property. Of course you should get someone to look at the contract and give you specific advice on this situation, but from what you have said it sounds like ordinary income to me. Kathy,
The "sale" requires a…tag:gohaynesvilleshale.com,2008-08-31:2117179:Comment:1083622008-08-31T20:23:07.748ZMattiehttps://gohaynesvilleshale.com/profile/Mattie
Kathy,<br />
<br />
The "sale" requires a well to be drilled and production established in the Haynesville within 3 years......otherwise, it reverts back.
Kathy,<br />
<br />
The "sale" requires a well to be drilled and production established in the Haynesville within 3 years......otherwise, it reverts back. If you are seling all of it t…tag:gohaynesvilleshale.com,2008-08-31:2117179:Comment:1079642008-08-31T08:57:37.233ZKathy Morganhttps://gohaynesvilleshale.com/profile/KathyMorgan
If you are seling all of it then it is capital gains, however if it is being "sold" with the understanding you can get the property back at some later time (e.g. buy it back cheaper then it was sold for or cheaper then someone else would pay) the income is still ordinary income.
If you are seling all of it then it is capital gains, however if it is being "sold" with the understanding you can get the property back at some later time (e.g. buy it back cheaper then it was sold for or cheaper then someone else would pay) the income is still ordinary income. Kathy,
No ownership of surfa…tag:gohaynesvilleshale.com,2008-08-31:2117179:Comment:1076972008-08-31T00:42:21.575ZMattiehttps://gohaynesvilleshale.com/profile/Mattie
Kathy,<br />
<br />
No ownership of surface, either....relinquishment of all interest.
Kathy,<br />
<br />
No ownership of surface, either....relinquishment of all interest.