Actually, I’ve been approached by someone who wants to purchase my mineral interests and I need some advice about what to do. They’re located in Smith County and there’s not much activity going on from what I’ve been told but since someone give me some advice about how to evaluate an offer so I don’t get Screwed. I appreciate it.
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Please add your state as several states have a Smith County.
This post refers to Smith County Texas
Can you tell me how to edit it? It won’t let me delete it and start over.
I fixed it for you.
If you want to share the Block, abstract name and number, plus section, we can help with the activity. Then you will have more accurate information before making a decision. Most offers come because the buyer knows something. The mineral owner needs to get up to speed before accepting any offer as they tend to start out low just to see who will bite.
The plot is located in the AH Watkins survey a – 1055 Smith County Texas. It is described as the first track in the certain warranty deed dated August 5, 1957 my sister and I together own almost 40 acres of minerals in the total 116 acre plot I would appreciate any help you can give me I sure don’t wanna get ripped off in looking at the area. I have been told that there’s nothing going on there now I wonder.
And I should probably say that they are currently under a five-year lease with tangent
There is no current drilling in that section and I do not see any permits yet. But there is a whole lot of leasing surrounding you. Looks like something is developing. If you don’t need to sell, then just sit back and see what happens. If you do need to sell, than ask for more than what they are offering. You may have capital gains tax if you sell, so be aware of that. Agents rarely tell you about that issue.
That is great information. I really appreciate it. Thank you very much.
Do you know where I can find the value of my mineral rights in 2017 when I inherited them for my mother I understand that there’s a clause under capital gains where you can save a lot of money because you can use that date as your basis for calculating capital gains
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Your basis will be the value of the rights when your mother passed, assuming the rights were part of her estate. If you decide to sell, you’ll owe between 0 and 20% on the gain in federal taxes plus state taxes, if applicable. The gain is the amount you sell it for, less your basis.
It may be tricky to value these rights since they are not producing. You may can use the lease bonus as a starting point. Pecan Tree performs mineral valuations. You can find their website here or in the page directory at the top banner under the mineral services tab.
Tangent has leased about 375 acres in the Watkins Survey. They leased on behalf of Geosouthern. Target is Goodland Lime. I have not heard about any immediate drilling plans.
I’ve always heard a very easy number on value is 3x whatever the lease bonus was for non-producing minerals.
That might be the sales value, but it would not be the basis at the time of inheritance.