Thanks Todd. Like Kind is something I had never heard of. I’ll check into that.
correction: “There were at least” not “their was”. My English teacher would be ashamed. lol
Our accountant said our taxes on this “long term capital gains” would be less than 15% since it was leased since 2013 and we had owned some of it since 1969 and the rest since 2009.
I think that’s a fair price Linda considering that’s the gassier side of 2n-4w. Nothing wrong with taking some money off the table.
Regarding taxes…one thing to consider in Oklahoma is that state capital gains taxes are currently exempt. There’s a good deal of saber rattling from some legislators about changing this. The governor elect I’m guessing will not be on board with that agenda, but you never know. In my opinion the state will be forced to address the issue sooner rather than later because it would bring a lot of revenue to the coffers. Federal taxes as a % should be the main focus but the state exemption is a nice bonus for as long as it lasts.
You could also consider selling a portion of your interest to mitigate the tax burden.
I don’t understand what you are saying here Huey. Can you put it in terms a grade schooler can understand please? lol
yes ma’am! I recall being able to do that in the past. Thank you! I was just wondering if Linda knew anything about those rigs up in that area. Shes so good at that TRACKING!!
Linda & Huey-- I appreciate the tax info. But Huey, I also need clarification on what you said re state capital gains taxes are currently exempt. Exempt from what? It doesn’t sound like you mean federal taxes. Or is it that OK just isn’t taking cap.gains taxes now??
For property in Oklahoma, if you hold them longer than 5 years, when you sell them, you don’t owe any State tax on them, either regular income taxes or captial gains taxes.
Yes just OK tax exempt if you’ve met the holding thresholds. Saves you some money. Only important because like I said previously there has been a lot of talk of ending the cap gains exemption from both parties because it’s costing the state a lot of money and government is always trying to find more revenue.
Federal taxes will still be owed.
Say you own 10 acres at $0 basis. Rather than sell all 10 acres for say $20k/acre and incur taxes on $200k of income you could sell a few acres now and hold onto the rest. Then you’re incurring less income. This might work in certain situations for certain individuals especially if there’s carryover losses from previous years or the income would be ordinary income as opposed to capital gains.
Best to consult your tax professional before selling anything that will generate significant amounts of income.
Has anything new been permitted for 14-2N-4W?
Pretty much drilled up from earlier wells. You can look up the permits at the OCC. Some of 14’s wells are also permitted from 23 http://imaging.occeweb.com/imaging/OGWellRecords.aspx
Kathlyn, I saw your post. I happen to own some mineral acres right next to you in 33 2n4w. Would really appreciate speaking with you as would love to get an idea of the activity and interest you have been getting. Thanks.
Jay, I sold part of my acreage in Sec 32 to Mineral Resources. Original offer was 20,000 per acre & I got $22,000… Actually, I suspect I might have gotten a little more if I had insisted. Mineral Resources is owned by Continental. For Sec 29, the highest offer I’ve had is 22,500 by letter in January from Brigham Minerals, so they probably would go over that. I’m not selling any more this year. The offers have shot up over the last several months. Just remember Martha’s advice to not take the first offer!. Best of luck to you.
Thank you kathlyn! our acres are subject to a lease, which expires in 2020. The lease entitles us to a 20% royalty. we originally received a $3,200 per acre lease bonus and we are on the North East side of section 33… No drilling (to our knowledge) has occurred yet, any idea or range of what a fair offer would be for our acres? Really appreciate it!
A 1/5th lease will garner a higher asking price than a 3/16ths.
Thank you, but i was not sure if the acres Kathlyn sold were subject to a lease.
Were the acres you sold already leased out or were they sold not subject to an existing lease?
My acreage in 32 were/are leased by Continental and in production. It’s the Claudine well.
Thanks for info every bit helps!
Huey…haven’t heard from you in several months. Hope you are ok!