In 2005, I inherited the mineral rights on five acres of the following tract of land in Major County in Oklahoma:
Southeast Quarter of Section 23, Township 20 North, Range 14 West
I am in the process of selling these rights. For capital gains tax purposes, I need the cost basis of this tract in 2005.
Is this something you can help me with?
Thank you, TNLad
Are you aware that Comanche has a pending horizontal well in that section? Are you willing to give away the pending royalties for the well? They are probably going to be much larger than the old vertical wells.
Did the original probate give a value? The section had a gas well that was active in 2005. The back of the envelope estimate back then was seven years of gas income and four years of oil as of the date of death. You could get an engineer to do a workup of the historical value, but that is rather expensive. You can look up the sales deeds for that section or the eight contiguous sections that border it from 2005 on www.okcountyrecords.com and use the document stamps to get a feel for the amount. $1.50/$1000 of value. If the deeds list the acres, then you can get a ballpark.