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Discussion Forum Index --> Tax Questions --> Basis of Mineral Rights
Tminco (talk|edits) said:
| 21 January 2006
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| I have a client who inhereted some mineral rights. His father owned some land that he sold before died but he retained the mineral rights. His father passed away in 1976 and the heirs sold the mineral rights in 2005. Does anyone know how to go about determining the value of the mineral rights in 1976?
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TGilliam (talk|edits) said:
| 21 January 2006
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| At the father's date of death the surface rights and the subsurface mineral rights should have been valued in order to prepare the father's estate tax return. The FMV at their fathers death is the basis assuming he was not married at date of death. Good Luck!
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DZCPA (talk|edits) said:
| 21 January 2006
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| If no 706 was filed, look and see if any similar transactions occured around 1976. You can estimate its value based on your sales price today valued back to 1976 using rates of inflation to adjust the amount. Your estimate will be close and have little tax effect since it happened 30 years ago (alot lower than the sales price).
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