Advice about selling lease Location: Township 23N, Range 6W
- Sec 14: NWNW
- Sec 15: NWNE, N2NW, SWNW,
Hi again, Prop in WARD COUNTY, TX ; LOT 1 BLK I, ! Received an offer, fishing trip; I noticed the reference Of 96.57 NRA ; first our acreage is smaller, and I have Not seen the letters in this form before? NRA
COULD some one identity why the acreage error and identify NRA, Please and thank you. Mike
NRA is Net Revenue Acres. It is commonly used by brokers who are using 1/8th as a standard royalty.
[acres in tract] X [% of minerals owned] X 8 X [royalty interest reserved in lease] X [fraction of royalty interest being sold/leased].
So if you have 10 acres at 1/8th royalty, you have 10 net royalty acres. If you have 10 acres at 1/4th royalty, you have 20 net royalty acres.
So in your case, you probably have less mineral acres than the 96.57 net royalty acres because your lease is larger than a 1/8th royalty.
Sold leases but trying to
Sold two New Mexico leases but need to do estimated taxes. Who can direct me?
Your CPA or tax advisor can help you calculate the federal estimated tax due in September and ant state income taxes.
They tell me I need the cost of lease at time I inherited it but who would know that? Does that mean there would be place to find out or do I need someone to appraise it someho? I have no other papers. Accountant etc knows nothing about things like this.
Your basis is the value at time of inheritance LESS all depletion deductions that you have taken over the years. If you have owned for many years and the properties have been producing royalties and you have deducted depletion on your tax returns, then your basis may be zero. This is the situation for many long-term owners.
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