Family member died in 1987, leaving me mineral rights which I sold in 2012 for $275,000. I did not file taxes since 2010 but received a letter from the IRS asking about 2012. Trying to clarify what role, if any, does the value of the mineral rights in 1987 play.
My best assessment:
Value of mineral rights in 1987 is determined to be $50,000. Would that mean I owe taxes on $225,000 vs the full $275,000? If so, how should this be reported to the IRS?
I know I need expert advice, and I am supposedly receiving it, just trying to see if they are on the right track. They seem great at taxes but new to mineral rights. I can’t afford several thousand on an attorney or mineral rights expert.
Any guidance is appreciated.