This week I received my first royalty check for oil royalties. NG was not reported yet but I'm sure it willl be on next month's check.
Since the second estimated payment will have to be sent in on June 15th I began calculating my royalty income for tax purposes.
My questions are: how do I determine my estimated royalty income since I know that in all likelyhood the oil production will decline througout the remainder of the year?
Also since I have no idea how much NG production there will be, except for the IP, do I wait until actual production begins and then begin paying estimated tax on the 9/15/2011 estimated tax payment?
Thanks for any advice on this topic.