Replies to This Discussion

Permalink Reply by Mickgyver on October 7, 2011 at 4:54pm

That is well said also ,I also hope tohelp  keep the entire Smith Goshen Group  intact for benefit of all, but those that are prone to listen to the loose lipped fools that probably don't have an acre to their name are causing some second thoughts I am afraid . I believe that the people that are unsure of their commitment will realize that they will have little chance alone to negotiate the needed changes in those one sided leases. This will keep them together for the good of all. Most people are getting more involved to keep up with the reports and when it is posted that the oil in that Buell well is some of the best oil ever discovered so far that kinda says it all . We got it, they want it , So be reasonable for both sides and we will all be happy

Permalink Reply by Cheyenne on October 8, 2011 at 12:36am

Those folks are trying induce panic in the hope of profiting from the fears of others. If they can spook landowners, they can to some degree control them. If they can get them to sign a quick lease, they win and the landowner loses, it's that simple.

 

Permalink Reply by Finnbear on October 7, 2011 at 4:59pm

Marginal tax rates top out a 35%, not 48%. Even when considering state taxes plus federal at the highest rates you only end up at 41.24% on the dollars in the highest brackets. You only pay the higher rate on the dollars that are within that tax bracket and not on the entire income. See this article on 2011 Federal Income Tax Brackets and Marginal Rates for a better explanation of how that works.

The IRS Withholding Calculator is another place you can easily calculate your withholding.

Below is a copy and paste of 2010 rates that I posted before.

Lease bonus money is taxed as unearned (passive) income and will be in whatever tax bracket your AGI fits in. I believe 2010 Federal tax brackets were as follows:

$0-$16,750 = 10%

$16,750-$68,000 = 15%

$68,000-$137,300 = 25%

$137,300-$209,250 = 28%

$209,250-$373,650 = 33%

$373,650+ = 35%

If your income this year is approximately the same as last year (aside from the lease payment) then add your lease bonus payment to your AGI from last year to get a good estimate of your tax liability.

You also need to consider your state tax liability. In Ohio, tax rates are from 4.327% to 6.24% depending on your income.

Royalty income has a tax advantage in that you get a 15% depletion deduction so you only pay taxes on 85% of the royalty money.

If you get any sizeable lease payment you should hire a good tax adviser to figure out how to keep as much of it as possible.

 

Permalink Reply by Cheyenne on October 8, 2011 at 12:43am

Thank you for the break down. Either way, the rate is to high and does not encourage future investments and commerce.

Seems to me that the sacrifices made by the long term working investors and their families are all to often punished, while on the other hand irresponsible and wasteful spending leading to dependance on others is rewarded.

Permalink Reply by Finnbear on October 8, 2011 at 3:54am

I wholeheartedly agree that the rates are too high. Unfortunately, the attitude coming from Washington is that anyone who makes more than a moderate income doesn't deserve to keep it. They believe Washington will do a better job of managing and spending it than the individual. This stifles investment and economic growth and will keep us in this rotten economy  even longer.

Permalink Reply by Mickgyver on September 30, 2011 at 7:33pm

I need to say that the patient existing long time  Smith Goshen Group is a ( non profit group) with the benevolent intention of enabling the members to see the true appreciation that friends and neighbors can provide when they work together for the best results of an entire group. This strength  has and shall continue to grow and provide  the clout and desirable acreage amount which will attract only companies with enough capital and backing to purchase and provide the development  potential for these acres .This should not only result in one of the best overall monetary gain for the landowners but will provide the lasting protection for the various concerns of the landowners through a proper lease . The memory that shows how a well organized committee can  bring back the values of pride and teamwork of all the membership for the benefit of everyone will long be remembered . The generosity and hard work from the committee is amazing since they are working to help everyone without the express desire to enrich themselves from the groups monetary gains . I personally have not seen this kind of teamwork very often in a small area like we have, when the various amount of money and false promises are dangled in our faces.  I believe every current member should be proud to be able to be a part of this group and only those that can and  will remain intact for all concerned should consider contacting the various committee members to be added into the group.

Permalink Reply by Cheyenne on October 8, 2011 at 12:51am

Is there any chance that the Smith-Goshen Group would grow and take on acreage in Northern Monroe County into the group? Wayne Township in Southern Belmont County has been accepted into the group. Malaga Township in Monroe County is on the county line and borders Wayne Township.

Permalink Reply by Finnbear on October 8, 2011 at 3:56am

I would ask Larry about that if I had land bordering southern Belmont. You are not the first to ask that this week. Possibly, if there is enough land close to the border, it would be considered.

Permalink Reply by Cheyenne on October 8, 2011 at 4:36am

Larry Cain, I'm sure that you're following this site.

Now that there is an extension to the September deadline, would you now seriously consider, and possibility invite landowners from those townships located in Northern Monroe County that border Wayne Township into your group? Possibly Malaga, Sunsbury & Seneca Townships.

Permalink Reply by Finnbear on October 8, 2011 at 8:45am

You should contact him directly if you are interested in this. A united front with a few other bordering Belmont landowners would help your cause. He may follow this site at times but he does not post here.

Permalink Reply by Finnbear on October 10, 2011 at 5:26pm

And please report back here on what Larry says about this.

Permalink Reply by JB on September 30, 2011 at 11:25pm

The XTO deal , I believe, is paying on the gross, not the net! . just an fyi.

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