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 |