# Complicated Cost Basis for Inherited Mineral RIghts
**URL:** https://www.mineralrightsforum.com/t/complicated-cost-basis-for-inherited-mineral-rights/43770
**Category:** Accounting and Taxes
**Created:** [March 29, 2019, 1:51am UTC](https://www.mineralrightsforum.com/t/complicated-cost-basis-for-inherited-mineral-rights/43770 "2019-03-29T01:51:07Z")
**Posts on this page:** 7
**Page:** 1
### Author:  [@Cheryl5](https://www.mineralrightsforum.com/u/Cheryl5)
#### Post date: [March 29, 2019, 1:51am UTC](https://www.mineralrightsforum.com/t/complicated-cost-basis-for-inherited-mineral-rights/43770/1 "2019-03-29T01:51:07Z")
In 2004 my dad died. He had no knowledge of the mineral rights because there were no surface rights or ownership. I had no knowledge of mineral rights until contacted in 2012 by a landman. An upfront lease bonus of $84k was paid in 2013. Triad Hunter filed bankruptcy. There was no pipeline or production so thought rights were a dead issue. Contacted by another landman in 2018. Sold mineral rights to speculator for $67,500. Still no production. No one I’ve contacted knows how to value for stepped-up basis or capital gains taxes. US Mineral Exchange suggests taking the inflation-adjusted average price of oil in 2004 versus the same for 2018 and using the difference to determine capital gains since there was no production then and none now. M\_Barnes or anyone else out there, can you confirm, deny or advise? Appraisers, lawyers, landmen and CPAs I’ve spoken to agree with this approach once I point it out. Thanks much.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [March 29, 2019, 1:54pm UTC](https://www.mineralrightsforum.com/t/complicated-cost-basis-for-inherited-mineral-rights/43770/2 "2019-03-29T13:54:09Z")
I would not be qualified to answer that question. Suggest you contact an appraiser who can give you a professional opinion that he/she is willing to sign. If you cannot prove a case, the IRS will use a $zero base and charge capital gains on the whole sale.
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### Author:  [@mjenz](https://www.mineralrightsforum.com/u/mjenz)
#### Post date: [March 29, 2019, 2:40pm UTC](https://www.mineralrightsforum.com/t/complicated-cost-basis-for-inherited-mineral-rights/43770/3 "2019-03-29T14:40:59Z")
Cheryl,
What is the legal, county, state for this mineral interest?
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### Author:  [@Cheryl5](https://www.mineralrightsforum.com/u/Cheryl5)
#### Post date: [March 29, 2019, 2:57pm UTC](https://www.mineralrightsforum.com/t/complicated-cost-basis-for-inherited-mineral-rights/43770/4 "2019-03-29T14:57:43Z")
Mineral rights are in Aurelius Township, Washington County, Ohio. Macksburg is the city associated with this area.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [March 29, 2019, 3:16pm UTC](https://www.mineralrightsforum.com/t/complicated-cost-basis-for-inherited-mineral-rights/43770/5 "2019-03-29T15:16:08Z")
You might want to post this again in the Ohio area, as folks there may be able to give you some names of appraisers for that area.
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### Author:  [@Cheryl5](https://www.mineralrightsforum.com/u/Cheryl5)
#### Post date: [March 29, 2019, 9:44pm UTC](https://www.mineralrightsforum.com/t/complicated-cost-basis-for-inherited-mineral-rights/43770/6 "2019-03-29T21:44:49Z")
Thank you for your suggestion. I tried a mineral rights appraiser, a petroleum engineering professor at Marietta College (15 miles from site), the landman I sold the rights to, the Marietta mineral rights attorney who negotiated the 2013 lease, a Michigan CPA/Tax attorney, and several others. Many non-responses after repeated attempts to contact. The US Mineral Exchange is the only one forthcoming with what they consider a viable answer. Someone told me that the IRS has a specific form for mineral rights sales but I have not found anything to this effect online and to date my CPA hasn’t either.
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### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 7:12pm UTC](https://www.mineralrightsforum.com/t/complicated-cost-basis-for-inherited-mineral-rights/43770/7 "2025-01-11T19:12:36Z")