How the government spends our money is nothing to laugh about, Linda.
My concern is that the government thinks they own everything. I don’t think it will take them a lot longer to decide they own the minerals. Then where will we be?
I live in Arizona. We have national forest and Arizona State land. The state and the feds think it is government land. I say it is public land and should be controlled by and used by the people. The government is taking control of everything in the west.
Were you watching what was happening as the BLM was trying to take the Bundy Ranch in Nevada?
Martha, yes, the offer was from Echo. And yes the taxes would be killing.
Thanks Bob…Lord knows we can use all the help we can get. Never knew getting extra money could be such a headache! I do want to learn how to hang on to as much as possible without going to jail! lol (Don’t have time for that!)
Bob…nearly all of our minerals in the SCOOP area were either purchased by us when we were in college (from a cousin who was an heir) or from my husband’s brother (who was given it by his mother) several years ago and we bought it in 2014 but we did get a few acres from his mom as a gift a few years ago. All of it only adds up to a few acres so nothing we expect to get rich on (especially if the IRS gets it’s way) but it has been nice to be able to help some relatives and our Church and has been worth more than we ever dreamed that little bit of minerals would ever be.
Bob on the SCOOP stuff would we need to get a current appraiser or would the purchase offer letters work if kept and given to our kids when we pass on?
Guess this should be on Rick’s website for this and that having nothing to do with mineral rights but I’ll make it short. Hubby cut an article out of the paper that said only 1 percent of the money you give to the animal rescue and I figure the same for the humane society benefits the animals and the most goes for the administrators. Found out another disturbing thing about the Baptist Children’s home to which we thought about donating at one time. They said those kids have plenty of clothes and toys donated to them and that they average 6 new bikes each kid at Christmas and that the administration get a large portion of the cash donations. Hard to know what to do with it. Guess I’ll just spend it while I’m here and hand it to those I want to donate to in person. Listen to me talking like I’ve got money to burn! NOT!!! lol
yes! do tell about the 40,000 offer!!!
Martha, I’d love to hear your story about the ECCO offer.
Linda, several others got the same offer for sec 17
Kathlyn,
That was probably from Echo Energy. Not surprised about the offer, but I wouldn’t sell either! They want a working interest for a VERY nice section. Hang onto it!
Vicki: You may want to run that tax advice by a CPA that you trust, as without my attempt to disagree with you I do not believe that advice to be valid as when an asset is inherited the only real question is what is the “Basis” of the Asset that you are acquiring .
A slightly different example is if you inherited some shares of IBM that your benefactor had previously acquired for $50.00 and then left said shares for you and he or she passed away today and/or the gift was made to you as of today then your “Basis” would be $172.28 per share or where it closed today.
You would not have to worry about the gain from $50.00 up to $172.28, but any gain above $172.28 in my opinion you would be required to report!
Now as a practical matter if no Form 1099 is provided to you, even though the IRS and or OTC may not easily know about said gain in my opinion this would “not” alleviate your obligation to report any possible gain that may exist.
Whether you report the transaction or not is just up to you, and while I do not have the time to do any substantial research on this subject I do believe under the right circumstances and holding period that said gain could be reported as a Capital Gain as opposed to ordinary income.
The above few thoughts are just a quasi layman posting on a message board, and should never be construed as being as valuable as the advice that would be provided by a competent currently licensed CPA!
Some “offers” have high numbers in big print, but the small print indicates they’re paying “up to” that amount.
I suspect in some of those cases if you respond, they’ll try to talk you into selling for less than you originally planned to sell for.
Linda - In the case of Stephens, Grady, and Garvin in this immediate area where you have very good Production, a current Appraisal (if not onerous in cost) is well worth it for an heir today as the heir is allowed a “step up” in basis at the time of death or gift and is “not” subject to the growth before the time of receipt of either the inheitance or gift!
Where a Mineral Right is only paying a nominal sum or is currently non producing, in most cases I would tend to believe that just considering your basis at the time of acquisition is zero maybe the best course of action and is not worth the time or cost to acquire an Appraisal.
In Stephens the apparent latent possibility of a delayed home run probably lies with the hopeful future results from the Springer Production which should yield substantial Oil versus the mostly Gas Production being achieved from “most” (not all) of the Woodford Wells.
Linda - I forgot to mention that the step up in basis really is only beneficial upon a sale, and I cannot think of a particular advantage of an Appraisal in regard to the receipt of royalties.
Linda - I’m sorry for all of these additional comments and delayed thoughts as I am doing too many efforts at the same time, but just in case I should add that whether “you” purchased your Mineral Rights or inherited them it is still prudent if appropriate (i.e where a substantial increase in value <i.e. the SCOOP> has occured over your purchase price) for the heir to document a step up in value at the time of inheritance.
We’ll have to quit with this non oil related banter as I also do not enjoy reading off topic banter, but funny as you made your last post that my bride just came in and was looking over my shoulder and announced to me that the Humane Society was off her wish list for a number of different reasons and that she still intends on our family remainder going for the benefit of animal care but she is still determining where said far off gifts are to go.
Now in order to not be a hypocrite, I am ceasing with non oil related banter!
You can check on charities on the Charity Navigator. It lists what percentages of donations go to administrative, fund-raising, salaries, etc. I have Humane Soc of United States in my will, among other charities. Okay, so this is another off-topic, but it’s about where some of our oil money may go, so that’s my excuse.
Bob & Michael, I think it was 3/16, but not positive. He had left a message that was hard to hear, and the offer was for $38,000. But he was saying Sec. 22, so I called back to say he had the wrong owner or wrong section. He checked and said he meant Sec. 20. When I said I wasn’t interested in selling, he upped the offer to $40,000 and asked if I would consider selling half an acre. I said no and didn’t ask about the RI.