Finance

Have finance questions? Ask a financial expert online.

Ask an Expert,
Get an Answer ASAP!

We cashed out our mineral rights and are wondering if we put…

Customer Question
We cashed out our...

We cashed out our mineral rights and are wondering if we put that money into a trust for a non profit if that will help us avoid paying the inheritance tax. The amount is $80,000 or can we give that money directly to the non profit for purchase of land? Or can we buy the land and gift it back to the non profit? Basically we are involved with a non profit that is in need of a building for thier church and we cashed out this to buy that property for them but our account is telling us we have to pay taxes on the inheritance no matter what.

Submitted: 8 months ago.Category: Finance
Show More
Show Less
Ask Your Own Finance Question
Answered in 3 minutes by:
12/7/2017
Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 8 months ago
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Finance
Satisfied Customers: 2,766
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
Verified

Hello my name is ***** ***** I will be able to assist you today.

The process to donate the inherited $80,000 is a two step process.

The first step is to determine if there is any taxes due on the inheritance. To do this we need to know your cost basis in the mineral rights.

Do you know the value of the inherited minerals when you inherited? - This will help us establish a cost basis

Ask Your Own Finance Question
Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 8 months ago

After you determine if you owe taxes, then you would pay any taxes due and contribute the remaining funds to the charity. The donation will lower your total tax due, if you do in fact owe any tax on the inheritance.

Ask Your Own Finance Question
Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 8 months ago

If you have any additional questions please let me know.

If you have no further questions please take a moment to accept and rate my answer by clicking on three stars or higher. A positive rating of five stars is always appreciated. Thank you!
Ask Your Own Finance Question
Customer reply replied 8 months ago
The value is $80k which is what we are donating
Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 8 months ago

Was $80K the value when you inherited the mineral rights?

Ask Your Own Finance Question
Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 8 months ago

The taxable amount of the mineral rights will generally be (depending on how you inherited the mineral rights) The difference between the value when you inherited the property and any appreciation of the mineral rights.

Ask Your Own Finance Question
Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 8 months ago

If you are selling the mineral rights shortly after receiving the right then you most likely will not owe any tax.

Ask Your Own Finance Question
Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 8 months ago

To answer your initial question:

You do have to pay tax on any gains from the inheritance that were made between the time of the valuation date of the estate to when you sold the mineral rights.

___

For example: if you inherited the mineral rights 6 months ago and the mineral rights were appraised at $80,000 and you sold the rights for $80,000 then no tax would be due.

___

Alternatively, you could gift the mineral rights to the non for profit and then they could sell the mineral rights.

Ask Your Own Finance Question
Customer reply replied 8 months ago
Our parents told us years ago about giving us mineral rights but we just cashed them in a couple of weeks ago, so when does the "inherited" date begin? Technically we received the inheritance once we cashed it out correct not back years ago when we were told that those are our rights to sell.
Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 8 months ago

The inheritance date would be the date you legally received ownership of the rights.

Ask Your Own Finance Question
Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 8 months ago

A typical scenario is for parents to inform their children that they will inherit the property or in your case mineral rights at some point in the future.

Generally, that point in the future occurs either due to the passing of the parents or an outright transfer while one or both parents are still alive. The two scenarios have very different tax treatment when it comes to determining the basis.

Please let me know how and approximately when (the best you can) you inherited the property.

Thank you!

Ask Your Own Finance Question
Financial Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 8 months ago

If you have no additional questions would you please take a moment to accept the answer so I may be credited by JustAnswer for the work I have completed.

Thank you.

Ask Your Own Finance Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a financial professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Chad EA, CDFA®, CFP® Your Own Question
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Finance
Satisfied Customers: 2,766
2,766 Satisfied Customers
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA

Chad EA, CDFA®, CFP® is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,609 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,222 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,933 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
We were just wondering ..if we inherit a some of money from
We were just wondering ..if we inherit a some of money from my mothernlaws passing...are we able to find out how much inheritance tax we will have to pay federally and or with the state too next year?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,674 satisfied customers
CTK International based in state holds it's own 501c3 and we
CTK International based in Washington state holds it's own 501c3 and we operate as a foreign non-profit entity in the state of Colorado. During the course of operations a member of the church in Color… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My business partner and I bought an unmanaged tree farm. We
My business partner and I bought an unmanaged tree farm. We are an LLC in Texas formed Jan 1 this year. We had a bunch of mature trees ready to sell but no trees growing. We have planted new trees but… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
My parents are non US Citizens and they want to buy me a
My parents are non US Citizens and they want to buy me a property in Los Angeles (I am a green card holder and married to a US citizen, and we have one child who was born in the USA). We are wondering… read more
TaxWhisperer
TaxWhisperer
Principal
Master's Degree
24 satisfied customers
Paying Back Church Debt. I have a church. I recently sold
Paying Back Church Debt. I have a church. I recently sold land that was in the church's name. I've commingled personal and business funds so I'm not sure what to do. My girlfriend made donations over … read more
Phillips Esq.
Phillips Esq.
Attorney
JD
20,508 satisfied customers
We are non profit, 501c3 religious organization under and
We are non profit, 501c3 religious organization under and umbrella of like organizations although we all are separate, like Methodist Churches are separate with own tax id. We do pay a fee to Director… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,435 satisfied customers
Our church had farm land in a trust. The trustee decided
Our church had farm land in a trust. The trustee decided that instead of having the church collect money through rental of the land, we'd be better off investing. So the trustee sold the land and plac… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My brother and I inherited a property in a trust from my mother
My brother and I inherited a property in a trust from my mother after she passed away this last August. I have been living in the house/renting from her for the past 11 years. My rent basically covere… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
hello i have a question my family and I are selling my mothers
hello i have a question my family and I are selling my mothers home to me which is thier youngest sibling... we the loan company pays them there part what tax is or may be at the end of the year ....a… read more
abci168
abci168
Principal
27 satisfied customers
I own an LLC. Our company is getting ready to buy a building
I own an LLC. Our company is getting ready to buy a building for our business but I was told there are tax breaks if I buy the building myself as the owner and lease it to the company. Is that true? I… read more
R. Klein, EA
R. Klein, EA
Accountant
Master's Degree
480 satisfied customers
I am a parent of a daughter in college. I received an inheritance
I am a parent of a daughter in college. I received an inheritance from my late mothers estate. A check of 166,000.00. I havent cashed it yet. My daughter recieves a partial scholarship which I think i… read more
DanielleCPA
DanielleCPA
Certified Public Accountant
Bachelor's Degree
76 satisfied customers
My friend just got diagnosed with cancer. Weve started a website
My friend just got diagnosed with cancer. We've started a website for him and want to accept donations that will go to pay his medical bills. My accountant says that I can form an association (just by… read more
MarjorieCPA
MarjorieCPA
Certified Public Accountant
Bachelor's Degree
3 satisfied customers
I have just sold my mothers house foer 110,000 , will i have
I have just sold my mothers house foer £110,000 , will i have to pay inheritance tax or capital gains on this money thanks.… read more
Milan Vaishnav
Milan Vaishnav
Consulting Technical Analyst
Bachelor's Degree
536 satisfied customers
I am looking at a charity/organisation that has 200 branches.
I am looking at a charity/organisation that has 200 branches. Each branch raises money. Every branch actually pays into the same bank account. However, within that one bank account, there are 200 virt… read more
Milan Vaishnav
Milan Vaishnav
Consulting Technical Analyst
Bachelor's Degree
536 satisfied customers
my parents want to get a heloc and use that $$ (250,000) to ...
my parents want to get a heloc and use that $$ (250,000) to deposit into an irrevokable trust established 3 years ago. My siblings (trustees) would then buy a home in the southwest and allow our paren… read more
Dave Z
Dave Z
Self-Employed
Bachelor
418 satisfied customers
We filed chapter 13. over 15 months ago. We are coming ...
We filed chapter 13. over 15 months ago. We are coming into a inheritance. Our bankruptcy lawyer says we will have to pay back a lot of the money or dismiss the bankruptcy case and keep the money then… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
I am buying a proerty with family members in new jerset.I ...
I am buying a proerty with family members in New Jersey.I wish to put the title in a trust for my daughter,she is 17.My family reside in Ireland ,myself and my children are all US citizens.Is this pos… read more
LawNinvest
LawNinvest
Attorney
Juris Doctorate
66 satisfied customers
What is the most inexpensive means to transfer this lot.
My father owns a lot which he set aside for me. It is willed to me but he wants me to have it now so he no longer has to pay taxes. I would sell the property since I live out of state. He wants me to … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x