Recieved offer from Work Resources for mineral rights

West Virginia Mineral Rights Tyler County, WV
1

I have 4.125 acres in Tyler county “Ellsworth”. How do I determine it’s worth?

1 Like
2

Hi, the easiest way would be to get competing offers from other companies. You could have it valued independently but that would cost you money and if your intention is to sell then competing offers usually gets you a fair offer. Look up mineral buyers in the area, Harrison County has some good ones

1 Like
3

well you can go to the Wvdep site and see how much wells in that area have been producing. After that, you need to look at the markets and prices…and see if it’s better to sell the rights outright or to lease. If you lease its taxable income from monthly production…if you sell it’s a one time capital gains tax. I have wells in that district that produce nicely, but have leveled off after 13 months of production. From my numbers, the offer I was made was worth about two years of actual production. That is, the amount I was offered to get bought out…was about two years of monthly production tallied up. But the taxes are another matter entirely…capital gains is about 24 percent combined for federal and DC tax…if you get a monthly check that’s considered normal income and taxed at a rate acordingly…

1 Like
4

Also take into account that there is a 15% federal depletion credit on production. Many folks do not know about it, but cuts the tax bill significantly.

1 Like
5

I didn’t know that one. I’ll look it up for next year taxes. Do you have a link to it I can read up on? When I used turbo tax for my 2025 taxes that did not pop up.

I found it.

this is interesting. I’ll use this for sure. Turbo tax did not prompt me for this. I think I’ll go use a professional tax person for 2026 taxes in 2027.

1 Like
6

If you use Turbo Tax business, whatever level to get Schedule E, it calculates depletion for you, after you put in your royalty income for a property. The 15% depletion counts as a deduction, along with any other deductions such as any county property tax you pay for your oil and gas interest. Not all professional tax preparers know a lot about oil and gas taxes, and any West Virginia specific things so ask questions.

1 Like
7

Thanks! I used regular turbo tax, not the business version. But next year I’ll use it

1 Like
8

Thanks for info…my wife and I just inherited mineral rights to tract of land in WV that is producing royalties…wife did Turbo for taxes on royalties not sure we saw this.

1 Like