Value of non-producing minerals at the time of inheritance
Can anyone explain how to determine the value of non producing minerals at the time of inheritance. I recently sold some mineral acres which are subject to 15% Capital Gains Tax. However, only the difference of what the minerals were worth , at the time of inheritance, and what the minerals were sold for is subject to the 15% tax. A "basis", of the minerals, must first be determined.
Views: 374
Replies to This Discussion
-
Permalink Reply by Aubrey C. Sanders, Jr. on
-
I had a friend in OK about 40 years ago whose wife inherited property with oil production and RESERVES with estimated value of $1,000,000 . The federal government expected them to pay taxes on this estimate. This friend was pretty well off, but not cash rich.
Unfortunately he died before matter was settled and I don't know how it turned out.
Petroleum reservoir engineers often evaluate reserves for estates. I had to hire one to evaluate property which my siblings and I inherited. This was 30 years ago. The price paid/offered for mineral sales is usually based upon estimated reserves by buyer, however torturously done.
- ‹ Previous
- 1
- 2
- Next ›
Support GoHaynesvilleShale.com
Top Content
Blog Posts
The Lithium Connection to Shale Drilling
Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…
ContinuePosted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40
Not a member? Get our email.
Groups
-
San Augustine, TX
386 members
-
Miller County, Arkansas
27 members
-
Sabine Parish, LA
455 members
-
South Caddo Parish Group
440 members
-
Natchitoches Parish
400 members
-
Bienville Parish, LA
244 members
-
Fayetteville Shale
149 members
-
North Caddo Parish
358 members
-
Central Texas Gas
63 members
-
Cass County, TX
119 members
© 2024 Created by Keith Mauck (Site Publisher).
Powered by
