Hi, my siblings are inheriting some mineral interests in East Texas; there are 30 plus operators.
We’ll possibly need a CPA. Can anybody recommend one? Thanks
Why are you thinking you need a CPA?
To help stay compliant, to identify how much I should pay in estimated taxes, to balance the books and do the taxes.
Are you using a CPA currently for your taxes? I am not sure how you would go about balancing your books since most individuals do not use double-entry accounting. If not currently using a CPA, this will just add to your Schedule E reporting. Texas does not have an income tax, so no added complexity there. If all your purchasers report through EnergyLink, then you get a YTD by month of gross and net revenue through EnergyLink Basic. You will have to account for Ad Valorem taxes as a Schedule E deduction.
Any credible CPA that you are currently using can handle this work. They do not need to be based in Texas. If you are not currently using a CPA and pay estimated taxes, then just continue with the same method and add in the Schedule E net income. Remember to take the 15% depletion allowance based on gross sales.
Thank you for your taking the time to reply. I’ll probably continue with the CPA I already have then.
1 Like