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MyVirtualCPA
MyVirtualCPA, Accountant
Category: Capital Gains and Losses
Satisfied Customers: 16580
Experience:  CPA with tax experience ready to help you with your capital gains and loss questions
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Selling some minerals in Oklahoma that I inherited 6 years

Customer Question

Selling some minerals in Oklahoma that I inherited 6 years ago wit less than $5,000. Total value. Now they have offered me $150,000.I retired in 2016 @ age 65 now 66. 2018 will be my first full year of retirement above age 66. Or can I pass this on to a grandchild
Submitted: 1 month ago.
Category: Capital Gains and Losses
Expert:  MyVirtualCPA replied 1 month ago.

Thank you for your question. My name is ***** ***** I will be happy to help you today :-)

Expert:  MyVirtualCPA replied 1 month ago.

If you gift the mineral rights to your grandchild-- but if they sell it, they will have your basis in the rights ($5K) and have to pay the capital gains tax. Now, if you hold onto them and they inherit it as you pass away, they can take a step up basis and avoid capital gains tax; if you are wanting to sell now, it doesn't really help you avoid tax either way. Unfortunately, you would have to leave it to them in your will.

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