With Obamacare, I believe it added another 3.8% to Capital Gains Tax; so, 18.8% today.
Okcnhra said:
Peter — I’m guessing there was not a federal estate tax return but what about a state of Oklahoma estate return? Assuming none. Also assuming you are an Oklahoma resident. In the past during the days of Oklahoma estate taxes and valuations, have seen valuations placed from 3 years to 6 years of actual royalty receipts accepted by both the State of Oklahoma and IRS as a basis depending on whether you wanted that basis to be low or high. I would use the above as a starting point for tax basis. I agree with Rick Roberts, your best bet will be to contact a local attorney such as Harrison to help establish that value. In addition to the taxation angle, the outright “sale” of a mineral interest in Oklahoma is usually considered to be a capital gain asset subject to very low rates (15%) on the federal side and excludable 100% from Oklahoma taxation. As in all things taxation, subject to change without notice and your mileage may vary – grin – Be sure to make sure your situation qualifies for the exclusion and capital gain treatment.