chrisaukcam
Recycles dryer sheets
- Joined
- Jan 23, 2011
- Messages
- 57
I am going to check with a CPA, but wanted to get a feeling for what others may have done in similiar situations. I generally see good feedback from this forum, and I am sure there are others who have been down this path.
Background: My mother put me on the deed to her property mainly so that when she passed the land would pass to me and then I can do whatever with it and if I sell it, split the money with my 2 sisters.
Oil: Well the land is in SE Ohio and so there is oil under the land. We got a lump sum just for for signing for them to do the drilling and if they find oil we get a royalty from that in the future. And oh by the way, there is another company wanting to buy up those royalty rights for a lump sum - life is getting more complicated.
Taxes: I am in a higher tax bracket than my mother. So my half is taxed at a higher rate. I did an estimate and put back $X dollars from that check.
Future: Whether we sell the royalty rights for a lump sum, or keep the royalty rights and get quarterly payments at some point in the future, my Mother wants me to distribute my share 3 ways, 1/3 to me and my two sisters. But after seeing how much goes to Federal/State/Local taxes, it is a big bite. Is there a way to structure this to minimize the tax burden?
Background: My mother put me on the deed to her property mainly so that when she passed the land would pass to me and then I can do whatever with it and if I sell it, split the money with my 2 sisters.
Oil: Well the land is in SE Ohio and so there is oil under the land. We got a lump sum just for for signing for them to do the drilling and if they find oil we get a royalty from that in the future. And oh by the way, there is another company wanting to buy up those royalty rights for a lump sum - life is getting more complicated.
Taxes: I am in a higher tax bracket than my mother. So my half is taxed at a higher rate. I did an estimate and put back $X dollars from that check.
Future: Whether we sell the royalty rights for a lump sum, or keep the royalty rights and get quarterly payments at some point in the future, my Mother wants me to distribute my share 3 ways, 1/3 to me and my two sisters. But after seeing how much goes to Federal/State/Local taxes, it is a big bite. Is there a way to structure this to minimize the tax burden?