From your description, you have significant income and should already be using a CPA. Some general thoughts. What is your reason to get an appraisal? You cannot adjust your basis to the valuation. It is usually to give you an estimate of value to sell or for estate or gift purposes. For royalties, you use percentage depletion, unless you can get the reservoir engineering to determine the life of the wells to calculate cost depletion. You would need this analysis annually. The annual depletion (whether percentage or cost) reduces your basis in the minerals, down to but not below zero. After the basis is zero, you take percentage depletion each year. A bonus is not subject to depletion. Both bonus and royalties are considered to be portfolio income. If you have working interest income, that is treated as earned income, reported on Schedule C and subject to self-employment taxes.