Any Oil Barons out there?

I recently inherited mineral rights to small plot that has recently become productive due to fracking.

Proceeds are being handled by a company that bundled a collection together and cuts a monthly check.

What kind of tax document can I expect from the proceeds?

Is there a particular tax treatment, or is it going to vary from individual to individual?

 

Depends how the “company” is setup and what type of “owner” you are.

 

Hey uncle Jed, can I come swim in your cement pond and cahort with some of them girls?

 

Well, the company is a large corporate entity, while I am just me. I’m thinking there’s a 1099 headed my way, but have no idea.

 

not enough to for a cement pond, but it will fund a season of club racing an SV if oil and gas prices don’t take a dump.

 

That's a win bra!

 

Hey Rossk6! I just got my ancestry.org results and surprise! You're my dad!



I can pm account info for direct deposit...

 

In my case more of an also ran, but a couple of grand a year covers most of the expenses, so hopefully no huge tax burden to offset the revenue.

 

Set up a proprietorship business that's involved in oil exploration. Sponsor a race team budget and write off the expense equal to the revenue.

 

Should be a 1099 with a 15% depletion allowance

 

Don’t do it. Bail immediately.


















This fucking fracking is what is causing the price of oil to stay low. Don’t add to the bullshittedness. I need a new bike!