Capital Gains and Losses

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I just sold an oil royalty and understand I will not have to…

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I just sold an oil...
I just sold an oil royalty and understand I will not have to do anything until next year. The royalty was bought in 1950. Do I have to find out what it was worth then and what's it worth today? Any info you can give me will be appreciated.
Nancy
Submitted: 2 years ago.Category: Capital Gains and Losses
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Answered in 13 hours by:
3/6/2016
Tax Expert: TaxRobin, Tax Preparer replied 2 years ago
TaxRobin
TaxRobin, Tax Preparer
Category: Capital Gains and Losses
Satisfied Customers: 18,353
Experience: 15+ years in Tax preparartion as well as Instructor for tax law, theory, and application
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Hello

That depends on how you acquired the rights. If you purchased in 1950 then yes, you have to go back to your original cost and make adjustments if you claimed depletion.

If you were given the rights by a living person then you would also need to use the 1950 starting point because a gift retains the cost of the giver.

If you inherited then you use the fair market value on the date of death as set by probate or estate.

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Tax Expert: TaxRobin, Tax Preparer replied 2 years ago

Please post below if you need clarification.

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