Payment now for your interest may be beneficial for numerous reasons - be it concern over predicted future increases in long-term capital gains rates, price volatility in oil and gas commodities, or diversification of your portfolio.

Regardless of how you acquired your interest, negotiating a lump sum payment can provide you with income today, rather than waiting years to potentially receive money in smaller royalty payments.

Tax Advantages

Mineral Interest is interest in real property and considered capital assets for federal tax purposes. When owned for more than a year, the capital asset receives long-term capital gain treatment, resulting in a federal tax savings when sold. If inherited, regardless of when it was inherited, the interest receives automatic long-term capital gain treatment.

Tax Example

Existing production tax implications, compared to the tax savings of selling now for a lump sum or 1031 exchange.

Current Situation

Future Option 1

Future Option 2

You Keep 59%

You Keep 76%

You Keep 100%

CONTINUE TO CASH MONTHLY CHECKS

40.8% TAX
IRS IS YOUR PARTNER

OVER THE NEXT 30 YEARS

STRAIGHT SALE OF YOUR MINERALS

23.8% TAX
PRE-PAID FOR FUTURE PRODUCTION

TODAY!

LIKE KIND EXCHANGE - 1031 EXCHANGE

0% TAX VIA TAX DEFERRED LKE
INCREASE YOUR SURFACE ACREAGE,
INCREASE YOUR LEGACY

TODAY!

Eliminate MARKET Uncertainty

In a fluctuating market, it is difficult to determine the future worth of your minerals. While your mineral interest may have value now, maintaining that value is never certain. Oil and gas mineral interests are depleting assets, and accepting a lump sum payment now will result in higher earnings than if you wait.

Additional Considerations
  • Eliminate POLITICAL Uncertainty
  • Eliminate OPERATOR Future Uncertainty - Bankruptcy
  • Portfolio Diversification