tst Posted February 20, 2015 Report Share Posted February 20, 2015 Purchased property for investment land in 2010 for $55,000. No breakdown in basis for surface versus mineral rights at purchase. In 2014 sold surface rights for $69000 Mineral rights were sold for $235000 Relinquished all rights. No royalties. Outright sales Sch D SURFACE RIGHTS $69000 sale with $55000 basis? Cap gain Sch D mineral rights $235000 sale with zero basis? Cap gain? Any thoughts on basis for mineral rights? Quote Link to comment Share on other sites More sharing options...
rfassett Posted February 20, 2015 Report Share Posted February 20, 2015 Lacking an appraisal specific to the mineral rights, I would allocate the basis in accordance with the sales prices. i.e., 69,000 / (69,000 + 235,000) x 55,000 for the surface rights. And the balance of the 55,000 allocated to the mineral rights. Yes - long term capital gain for both transactions. 2 Quote Link to comment Share on other sites More sharing options...
tst Posted February 20, 2015 Author Report Share Posted February 20, 2015 Thanks...appreciative. Quote Link to comment Share on other sites More sharing options...
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