Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

In 2015 is sold an oil and gas interest in western Oklahoma…

Customer Question
In 2015 is sold an...
In 2015 is sold an oil and gas interest in western Oklahoma I inherited from my late wife when she died in 2007. It has been unproductive for many years, including when she inherited it from her father in 1997. But beginning in 2012, it was re-drilled using modern techniques and began producing oil, gas, and gas distillates. How do I determine my cost basis for this property for the purpose of calculating the capital gain for my 2015 return?
Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 5 minutes by:
1/20/2016
Tax Professional: Lev, Tax Advisor replied 2 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,347
Experience: Taxes, Immigration, Labor Relations
Verified

The cost basis is based on how the property was acquired.

Specifically for inherited assets - the basis is equals to the fair market value (FMV) at the time the decedent passed away.

Thus - because you inherited the property from your spouse who passed away in 2007 - we need to know the fair market value at that time.
If you invested additional money into the property after that - the basis should be adjusted by that amount.

Ask Your Own Tax Question
Customer reply replied 2 years ago
How do we figure that out?
Tax Professional: Lev, Tax Advisor replied 2 years ago

If the decedent passed away in 2007 - we need to determine the fair market value at that time.

That is usually done by historical appraisal.

You may perform appraisal on your own - OR if you have difficulties - you may order any appraisal service.

The appraised value is usually based on comparable sales of similar properties in your area.

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 2 years ago

You may try your tax record - that might have a fair market value. You may contact the county where the property is located. The county usually perform appraisal to determine the fair market value for property tax purposes.

But anyway - if the property is not sold - the fair market value is determined by performing appraisal. There is no other ways.
It is in your interest to determine the correct basis as that will reduce your taxable gain.

.
I appreciate if you take a moment to rate the answer.
Experts are ONLY credited when answers are rated positively.
If you still have any doubts, need clarification - please be sure to ask.
I am here to help you will all tax related issues.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,347
33,347 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev 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:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

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

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
My husband died in 2011. Last year I received a 1099 Misc
My husband died in 2011. Last year I received a 1099 Misc for Oil & Gas royalties. When I couldn't get anyone at oil company to answer my questions when filing my 2014 taxes, I just sent in an extensi… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
Perhaps a challenging one here... Various clients invested
Perhaps a challenging one here... Various clients invested in oil and gas domestic exploration partnerships over the past few years. Law allows immediate write-off of substantial portion of intangible… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,347 satisfied customers
My name is ***** ***** Bixenman. One of my employees wifes
Customer: My name is ***** ***** Bixenman. One of my employees wifes father recently passed away in Indiana. We live in Oklahoma. She has an inherited ira form that she is trying to complete, and it i… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
My wife inherited real property that had been held in a
My wife inherited real property that had been held in a Family Trust. Her father died in 2007 and the property was appraised at 515,000. Her mother died in 2012 and the same property appraised for 303… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a schedule K1 and supplemental schedule k-1 oil
I have a schedule K1 and supplemental schedule k-1 for an oil related partnership. I have most of the k1 figured out, but I have some questions on where to put Box 13J, Box 13T1, Box 13T2, 17D, 17E, 1… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I am asking about any special forms I should fill out
I am asking about any special forms I should fill out for a single oil well I have invested in. Several years ago I invested $50,000 in an oil well. It produced oil and natural gas for several years, … read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,347 satisfied customers
We inherited mineral rights to property that just started producing
We inherited mineral rights to property that just started producing oil/gas. Can we take the depletion deduction on federal taxes? (15%)… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,347 satisfied customers
I received the following tax considerations for 2011. These
I received the following tax considerations for 2011. These are IDC's are from total 2011 invoices for an oil and gas well project in TX My The Intangible costs came to $29,523 and Tangable costs came… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
RE: Oil and Gas Investments Direct participation in oil
RE: Oil and Gas Investments Direct participation in oil and gas can generate several tax benefits. These benefits range from large up front deductions for intangible drilling costs (IDC), to tax credi… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,347 satisfied customers
At the end of 2011 I became a Working Interest Owner in 2 oil
At the end of 2011 I became a Working Interest Owner in 2 oil wells. I am not a partner. I received an AFE and paid my portion of the drilling costs for each well, both tangible and intangible costs. … read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,347 satisfied customers
Towards the end of 2011 I invested $15k in an oil drilling
Towards the end of 2011 I invested $15k in an oil drilling project (the Baskin Fee Prospect). I would like to know how to report this investment on TurboTax Online. They don't expect to start pumping … read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,347 satisfied customers
I acquired a mineral interest by inheritance, and subsequently
I acquired a mineral interest by inheritance, and subsequently in 2010, I entered into an oil and gas lease (regarding the inherited interest) pursuant to which, among other things, I retained a royal… read more
USTaxAdvising
USTaxAdvising
Partner
Bachelor's Degree
609 satisfied customers
My wife was the sole owner of a home that she sold in Sept.
My wife was the sole owner of a home that she sold in Sept. 09. Here's lineage of who she became sole owner. Her mom and dad bought a home for $40k in 1966. Her mom died July 15th 1997 so dad was sole… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I sold the mineral rights in properties that I inherited from
I sold the mineral rights in properties that I inherited from my mother. My tax preparer told me that I have to figure out the cost value of the rights at the time of my mother's death. I sold the rig… read more
Jon Andrews
Jon Andrews
CPA
2,926 satisfied customers
I just received your follow up email and thought I would also
I just received your follow up email and thought I would also follow up with further info that I have found in my own research regarding the question I had posed to this service on how to claim and/or… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,347 satisfied customers
I inherited mineral rights in Texas a few years back. In 2009
I inherited mineral rights in Texas a few years back. In 2009 I signed a lease agreement with an oil company and received a lease bonus. Is this income taxable?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Re inherited IRA --mother dies, leaves son IRA. He ...
Re inherited IRA --mother dies, leaves son IRA. He takes distributions over his lifetime. He dies, remaining assets in IRA go to his wife, she stretches it and takes required distributions over HER li… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
i live in kansas. my federal income tax bracket is 28%. my ...
i live in kansas. my federal income tax bracket is 28%. my cousin is a geologist and is drilling an oil well and wants me to invest $30,000.00 in this venture.I would like to know how much of this $30… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,347 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