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TaxRobin, Tax Preparer
Category: Capital Gains and Losses
Satisfied Customers: 15182
Experience:  15+ years in Tax preparartion as well as Instructor for tax law, theory, and application
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I just sold an oil royalty and understand I will not have to

Customer Question

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.
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  TaxRobin replied 1 year ago.


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.

Expert:  TaxRobin replied 1 year ago.

Please post below if you need clarification.

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