I inherited mineral rights from both parents (split with the other heir). I live in another state, and I receive royalties from a natural gas well in Oklahoma. The companies that send me checks don’t seem to be very well run. In 2024, my checks stopped in May, and I didn’t notice until this April of 2025 when I was doing my 2024 taxes. Evidently they needed a W-9 from me, but never communicated that, just simply stopped paying my royalties. (It tooks several phone calls and emails to figure this out.) I finally got the rest of these 2024 royalties in 2025 and that has pushed my royalty income over $1000 for 2025, and I need to now do an Oklahoma State Tax Return. The other heir in my family STILL hasn’t received their 2024 royalties. To me, it’s too much hassle for around $1000 a year. I don’t really understand all the costs that are subtracted (ie, the total earnings will be something like $980, but they check will be for $750). I don’t know which costs are actual tax deductions. I do understand depletion, and have taken it every year. I inherited about 7 years ago. I am thinking of selling, but that looks complicated as well, and I have no idea of the cost basis at the time of my parent’s death, so figuring out capital gains is going to be difficult.
Yes, I would rather have inherited a position in a good S&P 500 index fund. It would certainly be easier to manage.The constant changing in the companies that send me checks is annoying.