New Year, New Reasons to Sell Mineral Rights
Everyone has different reasons to sell mineral rights or their oil and gas royalties. However, usually, landowners decide to sell off a portion (or all) of their mineral estate and royalties to generate cash for their current needs, like retirement, renovations, a new home or business endeavor, or simply to pay off debts in one lump sum and save on interest.
Clear Fork Royalty is a company that you can sell your mineral rights to, regardless of your reasoning. Maybe you’re simply tired of the unpredictable nature of your mineral royalty checks - we understand! We have worked with thousands of mineral owners across the US that have decided to sell mineral rights for their immediate cash needs.
Maybe this is the year you clean up your finances and make your mineral rights work for you!
We are not a mineral exchange or a mineral rights broker. This means Clear Fork Royalty buys mineral rights and oil royalties directly from owners (like you) who are looking to sell mineral rights from all across the United States.
Most Common Reasons to Sell Mineral Rights & Oil & Gas Royalties
· Immediate Cash
· Less Paperwork
· Simpler Accounting
· Clear-Up Estate Problems or Issues
· Future Estate Planning for Family or Retirement
· Liquidity for Another Investment Opportunity
· Pay for Unexpected Expenses like Medical Bills
· Commodity Price Fluctuations
· Save Up for Retirement or a Nest Egg
· Eliminate Future Risks
The Biggest Reason to Sell Mineral Rights: Get a Lump Sum!
The riskiest part of owning mineral rights is that there is no guarantee for your future royalty payments. If oil or gas prices drop, then the oil or gas company drilling on your land may leave and simply let that land remain dormant - getting you nothing each month! And if you are relying on that money, it might be smart to sell.
On top of that, your royalties are a percentage of the total profit made from the oil or gas pumped from a particular well, usually under 25%. Which means, that while there is the possibility of long-term income, there is never a guarantee. The variability of this income can be a hurdle for many oil and gas royalty owners – who knows how long it will last!
Selling mineral rights means a single, lump-sum payment, which is often advantageous for owners.
Tax Advantages in Selling Oil & Gas Royalties
If you are receiving oil or gas royalties you have to pay federal income tax on your royalty revenues each and every year, as well as a state severance tax, and a county ad valorem tax - that's a lot of taxes on top of your regular city, state, and federal taxes!
But did you know that even if a property isn't producing oil or gas, property tax payments to the federal, state and county governments are still required? Your lack of control over how much your property is producing, and might produce in the future, along with the taxes you are obligated to pay could be a great reason to sell mineral rights instead of keeping them!
Selling Your Oil & Gas Royalties Could Mean Low to No Taxes
Did you know it is possible to sell mineral rights and pay no taxes?
Under the 10-31 Like-Kind Exchanges Code, a federal government allows you to sell your land and mineral rights and pay no taxes if you purchase a like-kind property with some or all of the money. Want to know more about taxes, laws, and local ordinances? Clear Fork Royalty knows it all!
Even if you don't buy a like-kind property, you no longer have the tax burden associated with your previous property and royalties. And while there are dozens of other benefits to selling mineral rights, a lump sum of money and lower (or no) taxes are the two biggest advantages and reasons to sell mineral rights.
What Are Your Reasons to Sell Mineral Rights?
To begin your selling of mineral rights, fill out our form here. We will send you a fast, free, no-obligation review of your mineral rights and oil royalties and an offer!