Replies to This Discussion

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on March 17, 2026 at 11:02

JR, is the valuation for tax purposes?

landownerPermalink Reply by JR in VA on March 17, 2026 at 12:54

Hi Skip, 

Thanks for answering....I have sold some mineral rights, resulting in a capital gain. The rights were inherited.  I am trying to set a value at the time of inheritance, so I can use it to offset the capital gain.  

Thanks in advance, 

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on March 17, 2026 at 13:39

I have provided an opinion of value only a couple of times.  I have done that at no charge for clients I have assisted with a mineral sale.  I know there is a mineral accounting firm here in Shreveport that can do that and they may have a formuila.  I also know they are not cheap.  Here are my thoughts and someone can correct me if they have more knowledge.  I have never heard of anyone having a problem with my approach to valuation and I think that this is because as long as you provide a valuation that doesn't raise any red flags, the IRS simply accepts it.  They do not question how the valuation was arrived at.

landownerPermalink Reply by JR in VA on March 18, 2026 at 11:21

thanks