Approached to sell royalties

New to this site. Has Anyone sold their royalties? If so how much did you receive. We have been approached by a company wanting to purchase some of our interest . We own property in western guernsey and western noble counties. We are strongly considering selling a portion. Any input would be appreciated.

Views: 8585

▶ Reply to This

Replies to This Discussion

Permalink Reply by hopeforoil on June 29, 2012 at 8:24am
I was approached to sell my royalties not minerals
Permalink Reply by take the money and run on June 30, 2012 at 1:30am

hopeforoil, I have had a few offers. $3000.00 a acre being the best so far. To low for me, so I will wait it out.

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on June 29, 2012 at 9:28am

HI hopeforoil...you can see this is the kind of discussion we members have been wanting to see here and share info about...

I just thought I might mention if you decide to sell...you don't have to sell all your intersest....they could own just 1/2 or even less...that way you still get royalties.     I even wonder if they would just buy the natural gas interest and not the oil or minerals.

Permalink Reply by Tony Rox on June 29, 2012 at 9:48am

Hello Hope.

 I actually work in the area of mineral rights purchasing.
The advice that you have gotten here is very solid.
If you wish to ask more detailed questions, I could give you more detailed answers that are best not posted in such public view. As each individual is in a different position. Call it free advice to the best of my knowledge. I wont even make an unsolicited offer.

Also, to add..... look up the proposal of the capital gains tax incres from %15 to %30 percent. I doubt that will happen, but perhaps there will be an increase somewhere in between. And, there are significant tax advantages to selling. Wether it be now, or later.

Just advice from a purchasing p.o.v.

From a sellers p.o.v. - you know your needs and motivations. You make that call.

 

Big thing to remember as pointed out here by another - you can sell a percentage only. Kind of hedge your bet.

'Hope'fully this helped !

Permalink Reply by hopeforoil on June 29, 2012 at 10:00am
Thank you for the responses. As I stated in earlier post we were only considering selling a percentage of our interest so we could still have some "skin in the game". Tony do you know of anyone interested in noble county? Specifically olive township. Thanks
Permalink Reply by Jim Litwinowicz on June 30, 2012 at 1:55am

Tony what are the tax advantages of selling?

Permalink Reply by Glenn C. Keith on June 30, 2012 at 2:00am

I would assume he is talking about the capital gains tax being lower now than it will be in the future. So, if you sold now there would be less of a tax hit.

Permalink Reply by Steven Kacerski on July 5, 2012 at 10:20am

The gain from selling your mineral rights is capital gain income, taxed at 15% in 2012, assuming you held the property more than 1 year.  If the property is held less than 1 year, then the capital gains are taxed at the ordinary income rates.

For 2013, the long term capital gain rate is scheduled to increase to 20%.  Also, thanks to the Supreme Court last week, the Medicare surtax of 3.8% goes into effect.   This will be an additional tax on unearned income, such as interest, dividends, royalties and capital gains.  This doesn't kick in until adjusted gross income is over $250k for a married filing joint filer or $200k for a single filer.  Something else to consider. 

If you have any additional tax questions about selling royalties, leasing or how the medicare surtax will impact you, feel free to contact me. I'm a landowner as well, so the planning ideas I'm working on with clients now are things I'm doing in my own personal situation.

Steven Kacerski, CPA

Packer Thomas

330-533-9777

Permalink Reply by Linda A on July 8, 2012 at 1:10am

@ Steven,

is it true the bonus money is taxed, up front, @ 40%?

3uq96odaochmjPermalink Reply by 3uq96odaochmj on July 2, 2012 at 4:49pm

I sold mine to the Chinese - and they paid with gold Canadian dollars, not that worthless american funny money!

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on July 2, 2012 at 4:53pm

If you are new to doing oil and gas leases...I recommend joining a 'land group' in your area to see what the prevailing prices are and whom they are doing business with..... I highly recommend that you do the research yourself ...and if presented with a contract then either join a landgroup (they usually have an attorney or someone knowlegeable ...hopefully)...or obtain advice or hire a well organized oil/gas attorney.    this is something to rush thru on...every clause needs very understood, some need reworded, some need excluded, etc.

p.s.   welcome to our forum here...

Permalink Reply by hopeforoil on July 3, 2012 at 1:41am
USA. Thanks for the welcome. My minerals are already under lease. I have beem approached to sell my royalty not lease my minerals.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service