Hi - Received an offer from Rice Energy which shows 1/2 bonus paid in 75 days and balance paid one-year from signing. Does anyone know if Rice Energy is normally agreeable to other bonus payment schedules that would better benefit the landowner (like maybe 1/2 in 75 days + 1/2 in 3 months)? Am worried they would not pay the second installment when it comes due. Any advice on this is welcomed!
Comment
there is no advantage to take multiple payments in the same tax year. Now if they are paying over different tax years, that can be very beneficial to you, depending on the tax bracket it puts you in. In hind sight, I would have liked my 114 acres split over 5 years instead of all at once. Put me in the top tier tax bracket with no way to reduce the tax exposure. I am signed with Rice as well.
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