# Cost basis in inherited royalty interest
**URL:** https://www.mineralrightsforum.com/t/cost-basis-in-inherited-royalty-interest/52212
**Category:** Martin County, TX
**Created:** [October 18, 2019, 2:08pm UTC](https://www.mineralrightsforum.com/t/cost-basis-in-inherited-royalty-interest/52212 "2019-10-18T14:08:28Z")
**Posts on this page:** 3
**Page:** 1
### Author:  [@kbkester](https://www.mineralrightsforum.com/u/kbkester)
#### Post date: [October 18, 2019, 2:08pm UTC](https://www.mineralrightsforum.com/t/cost-basis-in-inherited-royalty-interest/52212/1 "2019-10-18T14:08:28Z")
I am preparing to sell a royalty interest in Martin County that I inherited from my parents. The short question is how do I figure out what the interest was worth in 1975 - hence, my basis for figuring capital gains tax.
The details (if you are interested): My father acquired the interest in 1957. The recorded deed recites $10 as the consideration and bears two 5 cent documentary stamps. My mother inherited from my father in 1974. She died in 1975 but we were unaware of the interests until about a year ago. The first well was drilled in 2012-13.
I can’t find information online as to the documentary stamp tax rate that long ago. Also, I presume the interest did not appreciate much in value until there was at least a colorable plan to drill.
Any help will be appreciated.
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### Author:  [@TwoShoeBeagie7](https://www.mineralrightsforum.com/u/TwoShoeBeagie7)
#### Post date: [October 18, 2019, 10:06pm UTC](https://www.mineralrightsforum.com/t/cost-basis-in-inherited-royalty-interest/52212/2 "2019-10-18T22:06:28Z")
$10 consideration is a standard number and does not represent the actual price paid. Without knowing the actual price paid, you could assume a basis of “0” to be safe, or you could hire a mineral appraisal company to tell you what your basis is based on when the minerals were inherited. You must determine if the savings from determining an inherited basis by using a mineral appraiser is worth the cost. Nonetheless, these will be long-term capital gains, so unless you make a ton of income you will likely pay either 0% or 15% in tax.
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### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 5:22pm UTC](https://www.mineralrightsforum.com/t/cost-basis-in-inherited-royalty-interest/52212/3 "2025-01-11T17:22:56Z")