I'm a gas royalty owner and didn't know anything about a working interest nor how to go about filing taxes on this income or what tax forms to submit. I wasn't sure if I needed an accountant to help me file or do it myself. The royaty payments aren’t that great. Can you recommend books or online websites to help me understand what I need to know and how to go about getting documents like the deed to the land and wells I own, which is in a different state. It's so overwhelming when you're a newbie.
Hi! From your comment on your other video, I'd recommend at least doing it once with an accountant familiar with oil and gas. You may have a more complicated situation than usual. Most royalty owners can just file the income using the 1099 form sent to them and then taking the 15% depletion allowance. The Mineral Rights Forums has several folks well versed in taxes that can help guild you in the right direction. www.mineralrightsforum.com
You’re welcome! Take in kind means that you elect to take your portion of the actual product rather than your share of the proceeds. Typically this is under the context of an operator negotiating a gas contract with the pipeline company where they sell the gas to that company for X terms. One of the non-op working interest owners thinks they can get better terms by negotiating their own contract with the pipeline company, so they “take in kind” their gas (rather than having the operator sell their gas for them), and negotiate their own contract with the pipeline company. It normally doesn’t make sense for a solo non-op investor to take their gas in kind since it’s unlikely for the solo investor to have the volume to negotiate a better contract, or an existing contract they’re trying to add volume to. If you don’t think the operator is getting good terms, best to just find a different investment (unless you’re an industry expert and you really know what you’re doing).
With just a brief glance I like their business model but haven’t dug much into them. Would like to see their acquisition costs. I like gas-heavy mineral portfolios for a mid to long term return and they probably got some good buys in OK and haynesville the last several years, but the OK midstream market can be rough at times (getting that gas to market in an economic way). Good mineral diversity, it looks otherwise, which is good. They don’t have a 21-yr-old bro with an associates degree in sales as their VP of Engineering or Land, so that’s always a plus 😅.
Do you mean for investing in publicly listed companies who are royalty aggregators (like Caddo), or in investment funds who are investing into royalties (like Eckard)?
Hi Tracy. I'm new to oil and gas investing and after viewing a few UA-cam videos, I came across this one. I like the way you explain things so it's easier to understand for us common folks. I'm replying to this comment because I'm looking at making an investment with Eckard. I've been doing some research on the best way to participate/invest. I've been told that a great way to participate would be using a tax deferred account like an IRA, and that as soon as the investment is made to contact a third party appraiser to appraise the minerals, and that typically the appraisal will come in at 70-80% of the amount invested. That way the Roth conversion is done at a lower valuation. Is this something you do? I'm not looking at a large investment to start with, maybe $50k and thereafter thinking about investing $25k at a time. Appreciate your reply and thank you. @@PecanTreeOG
I just signed to be a working interest investor! Don’t know what I’m doing. Just investing. lol. Good video
Great video! Thanks Tracey! I really like how you simplify it for the non-professionals, so please keep up the good work
Thanks so much! 🥰
Great video, very informative.
I’m so grateful for this video. Thank you so much.,❤
You’re very welcome ☺️
I'm a gas royalty owner and didn't know anything about a working interest nor how to go about filing taxes on this income or what tax forms to submit. I wasn't sure if I needed an accountant to help me file or do it myself. The royaty payments aren’t that great. Can you recommend books or online websites to help me understand what I need to know and how to go about getting documents like the deed to the land and wells I own, which is in a different state. It's so overwhelming when you're a newbie.
Hi! From your comment on your other video, I'd recommend at least doing it once with an accountant familiar with oil and gas. You may have a more complicated situation than usual. Most royalty owners can just file the income using the 1099 form sent to them and then taking the 15% depletion allowance. The Mineral Rights Forums has several folks well versed in taxes that can help guild you in the right direction. www.mineralrightsforum.com
If you let me know which county in Louisiana I can help see if there's an online county clerk for that county, if you'd like.
want to invest in wells in Angola? talk to me.
@@RestauranteBeiraMarDid you find a way yet?
Not yet? Have anything in mind?@@liloegger6168
Thank you! Very informative! Can you explain what 'Take in kind' means?
You’re welcome! Take in kind means that you elect to take your portion of the actual product rather than your share of the proceeds. Typically this is under the context of an operator negotiating a gas contract with the pipeline company where they sell the gas to that company for X terms. One of the non-op working interest owners thinks they can get better terms by negotiating their own contract with the pipeline company, so they “take in kind” their gas (rather than having the operator sell their gas for them), and negotiate their own contract with the pipeline company.
It normally doesn’t make sense for a solo non-op investor to take their gas in kind since it’s unlikely for the solo investor to have the volume to negotiate a better contract, or an existing contract they’re trying to add volume to. If you don’t think the operator is getting good terms, best to just find a different investment (unless you’re an industry expert and you really know what you’re doing).
Do you have a course for valuations?
I don't, but let me know what you'd be interested in and we can consider it!
@@PecanTreeOG Yeah…I am..
interested in your services im looking at over the counter mineral rights
Thoughts on PHX?
With just a brief glance I like their business model but haven’t dug much into them. Would like to see their acquisition costs. I like gas-heavy mineral portfolios for a mid to long term return and they probably got some good buys in OK and haynesville the last several years, but the OK midstream market can be rough at times (getting that gas to market in an economic way). Good mineral diversity, it looks otherwise, which is good. They don’t have a 21-yr-old bro with an associates degree in sales as their VP of Engineering or Land, so that’s always a plus 😅.
Great video ! Just emailed you.
thank you!
What Oil or Gas royalty stock do you recommend now?
Do you mean for investing in publicly listed companies who are royalty aggregators (like Caddo), or in investment funds who are investing into royalties (like Eckard)?
Hi Tracy. I'm new to oil and gas investing and after viewing a few UA-cam videos, I came across this one. I like the way you explain things so it's easier to understand for us common folks. I'm replying to this comment because I'm looking at making an investment with Eckard. I've been doing some research on the best way to participate/invest. I've been told that a great way to participate would be using a tax deferred account like an IRA, and that as soon as the investment is made to contact a third party appraiser to appraise the minerals, and that typically the appraisal will come in at 70-80% of the amount invested. That way the Roth conversion is done at a lower valuation. Is this something you do? I'm not looking at a large investment to start with, maybe $50k and thereafter thinking about investing $25k at a time. Appreciate your reply and thank you. @@PecanTreeOG
Can I lease my rich oil land
What do you mean by “rich oil land”?