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Business Valuation, Accounting, and Litigation Support

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

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