@DCgasBaron
I’m not sure I understand the last paragraph. If you could explain that to me, I’d appreciate it.
Since I already signed with Antero, I don’t think I have the option to sell, do I? The letter from their landsman didn’t offer to buy the mineral rights. Just lease.
I don’t like to discuss my financial stuff in public but I’m a little desperate for information. I live very simply on about $20,000 per year. My retirement is gone, had to use it for home repairs. So my Medicare is subsidized by the state, and I have restrictions on how much i can earn. If we’re talking earned income, I can only make $190 more per month or lose benefits. I can’t afford to do that. But it might happen, are you saying? I was confused as to which was capital gains and which was another type of income. If you can help me understand that, it would help
So if I can’t afford to earn much money each year, and don’t have the option to sell, as I understand it, what do I do? Do I have any options?
I think you are overthinking this. With 0.008 acres you may get $25/month on your first month and then it will slow drop to one check a year for maybe $10/$20. The whole interest is probably worth less than $200.
If you do end up owning a larger interested there are plenty of companies that would be willing to buy it I’m sure
Royalties from wells are considered regular income and it’s added onto that figure when you do taxes. Capital gains is when you buy an asset then sell it later for more money. Like a house or mineral rights. I do not know if capital gains income affects your Medicaid limit. If you signed with Antero, they probably have a clause in there that allows them to match any offer from another party to buy it from you, instead of leasing it to them. You’d have to contact Antero about selling to them. If you sell them the rights then of course that’s it, no royalties payments.
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“Yes, capital gains count as income and can affect your Medicaid eligibility. For MAGI-based Medicaid (often used for pregnant women, parents, and low-income adults under expansion), Medicaid looks at your Modified Adjusted Gross Income. Because capital gains raise your MAGI, a large spike in a single month or year could push you over the income limit and cause a loss of benefits”…
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@DCgasBaron
Thank you. Under those circumstances, I don’t think any apply to me. I’m retired and not under any of the categories. But, to be sure, I’ll double check. Thanks!
You are not the only one “confused”. There are 4 of us who were heirs to the mineral rights in Marshall County WV. Somehow my cousin who was the executor of my Grandmother’s estate found out about them and we had to reopen the estate to deal with them. It took a few years to get everything sorted and split into individual owners. Like you, we have tiny portion of the overall but through HGEnergy have received more in royalties than the WV property taxes and state and federal taxes total. I live in Florida and it does not have a state income tax, fortunately. I am in the process of trying to get my portion into a TOD to my trust to eventually avoid probate. It is a process. I noted the lawyer’s name and number if I need to pass it on to my PA lawyer as we also have leases with CNX in PA - another state with income tax but they don’t assess property taxes. Antero is in the process of an acquisition of HGEnergy and we have received offers to buy our shares but none of us are so inclined to accept them and I think the offers are tied to the acquisition and benefits them, not me, in the long run. I think your lease with Antero is probably fair for this time in the industry.
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