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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10874
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Do they tax you on sale of mineral rights held years.

Customer Question

do they tax you on sale of mineral rights held for 10 years.
JA: The Accountant will know how to help. Please tell me more so we can help you best.
Customer: Purchased mineral rights in Texas from mother who passed away for $10000. We are hoping to sell property for $500,000. What taxes can we anticipate paying. We've held property for 10 years.
JA: PayPal, Debitcard or credit card are all fine. Is there anything else the Accountant should be aware of?
Customer: We have had royalty and lease income for 10 years.
JA: Our top Accountant is ready to take your case. Just pay the $5 fully refundable deposit and I'll fill the Accountant in on everything we've discussed. You can go back and forth with the Accountant until you're 100% satisfied. We guarantee it.
Submitted: 11 months ago.
Category: Tax
Expert:  Lane replied 11 months ago.

Hi -

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Yes, when you sell mineral rights it is treated as a long-term capital gains sale (IRC 1231) as long as it has been owned for more than one year.

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Your basis in the asset (the rights) is your purchase price.

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Long-term gains and qualified dividends are taxed at

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  • 0% if taxable income falls in the 10% or 15% marginal tax brackets
  • 15% if taxable income falls in the 25%, 28%, 33%, or 35% marginal tax brackets
  • 20% if taxable income falls in the 39.6% marginal tax bracket
Expert:  Lane replied 11 months ago.

I hope this has helped.

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Please let me know if you have any questions at all.

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If this HAS helped, and you DON’T have other questions … I'd really appreciate a positive rating (using the rating request, faces, or stars on your screen)

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That's the only way I'll be credited for the work here.

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Thank you!

Lane

I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986.

Expert:  Lane replied 11 months ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

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Let me know…

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Thanks

Lane