jjquantz
Full time employment: Posting here.
Do any of you have any experiences with oil royalties, especially selling them? DW's grandfather had many small royalty holdings on wells in OK and TX. These are increasingly becoming a pain the patootie. When he dies, they were split up and passed on to DW's mom, DW and DW's brother. Then FIL and MIL created a trust and many, but not all, of the properties were transferred into the trust. Apparently some of them were re-titled in FIL's name as well. Now, even 10 years after FIL's death, properties are being brought to our attention (via offers to buy) that are in MIL's name, FIL's name, and the trust's name. The total income from ALL of these properties is only a few thousand per year, certainly nice, but increasingly not worth the pain of paying taxes, record keeping, complexity of tax filing, etc. We have finally convinced BIL that selling them off is the best thing for his wife's (and my) mental health (we are the ones who handle the money in the family).
So, I believe, based on some research, that the proceeds from selling are to be treated as any other capital gain when they are sold. But it is unclear to me how one goes about establishing the basis for tax purposes. Any experiences out there? Any idea who to contact to find out?
So, I believe, based on some research, that the proceeds from selling are to be treated as any other capital gain when they are sold. But it is unclear to me how one goes about establishing the basis for tax purposes. Any experiences out there? Any idea who to contact to find out?