Sale of Mineral Rights Tax Question

My grandmother's farm is in PA, I am in CA. In 2012, my grandmother sold the mineral rights to the farm. As part of the living will the proceeds were split between my grandmother, two uncles, and my mother. My mother didn't want her portion of the estate (personal reasons), so she had the company who bought the mineral rights pay her portion of the sale directly to me. (We signed the appropriate contracts to initiate this.) I did receive the funds in late 2012, but I have not received anything for filing tax. Again, I am in CA, but the sale took place in PA. I do not know which state receives payment of the sale, if any. Any advice is appreciated.
  • Mineral wrights are not considered realestate
  • The irs won't help with this topic. filling the gain for the sale of mineral wrights is a problem HELP
  • The best advice I can offer is to speak with the attorney who assisted with your sell of your Mineral Rights. If you did not have legal counsel, I suggest to seek out consultation right away as it is POSSIBLE (but I do not know your situation) that you may NOT OWE tax on the sell. Good luck.
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A living will is a legal document that a person uses to make known his or her wishes regarding life prolonging medical treatments. It can also be referred to as an advance directive, health care directive, or a physician's directive. A living will should not be confused with a living trust, which is a mechanism for holding and distributing a person's assets to avoid probate.

As the property was in PA,  I'd advise you to obtain the services of an attorney familiar with PA law.  While she may have avoided probate with a living trust, it does not protect the estate from PA Inheritance taxes or the requirement to file a PA Inheritance Tax return..

Furthermore,  to establish a basis in the sale of inherited property, an appraisal should have been done valuing the property and its components as of the day of death of your grandmother.

You may still get something from the company that purchased the rights (it's only early January).
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