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Ask USTaxAdvising Your Own Question
USTaxAdvising, Accountant
Category: Capital Gains and Losses
Satisfied Customers: 1237
Experience:  Professional in capital gains and finance related questions
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In July of 2015 I sold a percentage of my mineral interest.

Customer Question

In July of 2015 I sold a percentage of my mineral interest. I inherited the mineral interest from my grandmother in 1988. Ho do you figure the capital gains tax on this? How does it affect my regular income, tax wise?
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  USTaxAdvising replied 1 year ago.


In order to calculate your capital gain on this you need to find out what the value was on the date of death of your grandmother. When you inherit property you inherit it at the fair market value as of the date of death.

This value will be your "cost basis" which is used in the calculation of gain. Gain = Cash proceeds - cost basis. All inherited property, where applicable, is taxed as a long term capital gain.

How does it affect my regular income, tax wise? - Well depending on the size of the gain, it could push you into a different tax bracket. For instance if you were in the 10-15% bracket with taxable income less than 37,650 (filing single) and the gain was 50,000 it would push you out of the 10-15% bracket and into 25% bracket.

See link here for the different tax brackets for 2016

I hope this provides the clarity you were looking for. Please let me know if something is not clear and I will get back to you as soon as I can.

Best regards,

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