Tax Basis for Inherited Mineral Interests
Tax basis for inherited property is generally fair market value as of the date of death. Often times a value for mineral interests is not included in the deceased inventory. However, it may be possible to arrive at a value for basis and stay within the federal estate tax exemption. Even though the acreage is not leased nor is producing, there is a value to the heir. Amended income tax returns may be filed for a period of three years.
New developments in technology allow us to compute basis in accordance with Internal Revenue Regulations at different points in time.
| Historical Estate Tax Exemption | |
|---|---|
| Year | Estate Tax Exemption |
| 1997 | $600,000 |
| 1998 | $625,000 |
| 1999 | $650,000 |
| 2000 | $675,000 |
| 2001 | $1,000,000 |
| 2002 | $1,000,000 |
| 2003 | $1,000,000 |
| 2004 | $1,500,000 |
| 2005 | $1,500,000 |
| 2006 | $2,000,000 |
| 2007 | $2,000,000 |
| 2008 | $2,000,000 |
| 2009 | $3,500,000 |
| 2010 | $5,000,000 |
| 2011 | $5,000,000 |
| 2012 | $5,120,000 |
| 2013 | $5,250,000 |
| 2014 | $5,340,000 |
| 2015 | $5,430,000 |
| 2016 | $5,450,000 |