Understanding Inherited Mineral Rights Before You Sell Them!
It is important to understand mineral rights if you have inherited them and how they can benefit you. Mineral rights are the rights to minerals, oil, and gas under a property's surface. Mineral rights allow a property owner to explore, extract, and sell the minerals beneath the surface of a property. When you sell mineral rights, you can save a fortune in taxes if you have inherited mineral rights . When you sell mineral rights, you pay substantially less in taxes because of the step-up basis you get from inherited mineral rights. How Does a Step-Up Basis Work? An inherited asset's value increases after the death of the original owner as a result of a step-up basis. Inheritance assets, including mineral rights, are generally valued at fair market value upon death of the original owner. As a result, when you inherit mineral rights, their value is increased to the fair market value at the death of the original owner. If, for example, your great-grandfather bought mineral rights ...