Oil & Gas Pro

Set up a FLP for your family to share proceeds of mineral royalties

New tax law gives FLP's an additional 20% tax break.  I used the FLP in 2007 to help share the royalty income with all my children and grandchildren.  I think this has helped greatly and future generations will share the benefits without breaking up the mineral interests lending strength  to the mineral ownership.  It is worth the work and money.  Find a good lawyer to set one up!  We have a  business meeting yearly - getting everyone together. 

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Oil & Gas ProPermalink Reply by Andrew on May 24, 2018 at 10:46

Does passive royalty income qualify as QBI eligible for the 20% tax break? 


landownerPermalink Reply by EastTexasFarmer on May 25, 2018 at 3:45

The benefits of the family limited partnership can be significant. But they can only be realized if the arrangement is valid under the requirements of the IRS. There are costs and expenses associated with the creation of these legal instruments. Consult a qualified legal or tax advisor if you think your family could benefit from a family limited partnership.

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