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Hello,You take the basis when you inherited and then subtract the depletion over the years and that is your new basis.
The difference in that and the $28,926 is gain (or loss). Tax will be capital and the rate will be based on your total income and filing status. Your rate of tax on a gain could be 0%, 15%, or 20%.
You will need to first determine your basis and that may require you going back over your tax returns to subtract depletion.
The depletion would have been for every year with the wells as the resource was removed.
Generally, if your average daily production does not exceed your depletable oil or gas quantity, you would have figured your percentage depletion by multiplying the gross income from the oil or gas property by 15% each year.
Your tax return information for each past year should have the depletion listed.