I inherited my minerals with my mom’s death in 2020. I am now considering an offer to sell them. but I would really like to know my position from a capital gain or loss.
I tried the CAGI website for my account, but they only go back to 2022. And those values looked really low for the revenue they were generating as compared to today.
So is there a way a mere mortal can ascertain the value I would use as a base for my minerals near Toyah in the Alpine High?
Tracy Lenz at Pecan Tree can determine the value. See link to website in Directories / Mineral Services above.
thanks for the lead. have reached out to Pecan Tree to see what such an assessment would cost.
The recommendation is much appreciated! Thanks!
I spent some time at the Reeves County Appraisal district web interface and they had nothing for me for year of inheritance. Nothing looked right for my mom’s account for 2020 as well. The 2019 numbers seemed close. Trying to recall but this may have been a time when Reeves CAD was having real issues and had tried to go it alone instead of using CAG to handle their minerals.
Might be easier/less costly to just pay a capital gains by letting IRS assign a zero basis. Possibly lower cost than hiring someone to calculate a basis.
Apache invested heavily in Alpine High in Reeves County and drilled a lot of gas wells. Gas prices continued to fall and development came to a halt. Many of the wells were shut-in or choked back. So the value at death may have been quite high and even after netting out the last few years of depletion, the owner could have a capital loss.
Hopefully whoever does the analysis performs a “does this make sense to do” check before starting any work (it’s part of our process at least). An appraiser should at least know the ballpark of possible results before starting the appraisal project, assuming they’re experienced, even if they can’t (and shouldn’t) guarantee the final results will be within that range.
If even the low end of the ballpark wouldn’t save the client enough money on taxes to pay for the cost of the project, then there’d need to be some external reason for needing it to continue. You’re just going to have an unhappy client if you continue blindly.