Value of Minerals

We sold some minerals to Antero this year. We need to find out what the value was in 1999 when we inherited the minerals so we can deduct that from our capital gains tax. Does anyone know of someone who can do that kind of work? Thanks.

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01i07a3wywensPermalink Reply by 01i07a3wywens on February 28, 2020 at 9:21am
A true value is hard to come up with. Depends on price, unit size, # of wells in a unit, etc. what county? Township? How many acres? How much did you sell for? I can give you a rough estimate for free.
Permalink Reply by Jim White on February 28, 2020 at 9:55am

Brett

Could you email me at jimdwhite@outlook.com. The value was confidential with Antero.

Permalink Reply by shakeshale on March 1, 2020 at 4:50am
There is a lot to valuing minerals
But it’s not that complicated if you know the proper valuation formulas typically used in the industry by those who perform evaluations
I had a neighbor who had to value her minerals at 1942 prices
They came up with a price
Permalink Reply by Tom Brian on March 1, 2020 at 5:43am

My thinking on this is the value was zero as in the 80s and 90s  land was sold with no value placed on mineral valve only surface, after 2000 the value was an issue,,,,,,,,,, 

Permalink Reply by shakeshale on March 1, 2020 at 5:55am
True some of the released leases have gone from $5000 an acre and 20%
To a release of lease filed in the county courthouse and no offers to lease or buy the mineral
Guess for some the value is Zero and others who are needed to completed units probably a small yearly payment to lease and then pray for drilling and hope all your acres are placed in a unit
Otherwise I think we go back to pre 2010 levels until there is sone type of huge supply disruptions
Permalink Reply by Dan on March 1, 2020 at 6:23am

With all the ambiguity involved I would say whatever is most advantageous for you tax wise.  The IRS is understaffed and underfunded.  They probably could care less what you say the value is.  If they do I would let them call you out.  Just my opinion and I certainly am no tax pro. 

Permalink Reply by Jim White on March 4, 2020 at 3:30am

Thanks all. Answered my questions to the point I know what I need to do.

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