And today we discuss IRS mineral rights valuation and when you should get an appraisal done to set the IRS cost basis for mineral rights inherited then sold. Not only that, we also talk about the National Association of Royalty Owners (NARO), what you need to know about this organization, and why you should be a member if you aren’t already one. If you haven’t already, be sure to listen to the Mineral Rights Podcast Episode 4 where I talk about the different ways that minerals are valued. We talk in more detail about some of the terms that I cover in Episode 4. I’m really excited about this conversation because I had a chance to sit down and talk with one of my peers in the minerals consulting business, Rob Prentice. Special thanks to Converge Denver for hosting us in their recording booth!
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Click here for our FREE IRS Mineral Rights Valuation and Tax Resource Guide.
Bio:
Rob is the President of Turrett, LLC and current President of the Colorado Chapter of the National Association of Royalty Owners (NARO). Rob is an appraiser of mineral rights emphasizing oil and gas minerals. His firm is Turrett, LLC which is also a Colorado-based company. Turrett specializes in appraising minerals for trusts and estates, assisting with public reporting requirements for securitized oil and gas companies, technical and financial guidance for acquisition and divestiture of properties, preparing purchase price allocations for acquisitions, and expert witness services. His experience has been primarily in the western and central states of Colorado, Wyoming, North Dakota, Montana, Utah, California, Kansas, Oklahoma, and Texas.
Rob holds a B.A. from the University of Colorado (2000) and an M.B.A. from the University of Denver (2007). He is also a member of the Society of Petroleum Engineers, American Association of Petroleum Geologists, and the Denver Petroleum Club. Mr. Prentice is a Certified Mineral Manager (CMM). He is the president of the Colorado chapter of NARO (National Association of Royalty Owners).
In This Episode, we Discuss IRS Mineral Rights Valuation to Determine the Cost Basis of Inherited Mineral Rights:
- How did you get started in the oil and gas and mineral rights business?
- Tell me a little about Turrett – what services does the company provide and what is your role?
- Tell me about your typical client?
- For trust and estate appraisal and valuations, setting the IRS tax basis for inherited minerals is an important topic. What is involved with performing an IRS mineral rights valuation or appraisal? How does this differ to an appraisal that is performed for understanding fair market value when a client is looking to sell their property?
- When does it make sense for someone to have an IRS appraisal done vs. just taking a $0 basis and paying taxes on the full proceeds of the sale.
- When might it make sense to NOT have an appraisal done? e.g. certain property size?
We also Talked about the National Association of Royalty Owners:
Let’s switch gears now and talk about your involvement in the National Association of Royalty Owners, or NARO. The mission of NARO is to support, advocate, and educate for the empowerment of mineral and royalty owners.
- Why is membership in an organization like NARO important and what should mineral owners know about it?
- What are some of the education opportunities available to NARO Members:
- Mineral Management Training is given at every state conference. Here’s the link to a video recording of this presentation that you can watch anytime.
- When did you first get involved in NARO Colorado?
- Given the political climate in Colorado and the pressures being placed on the oil and gas industry, I imagine you have been busy this year. What was NARO Colorado’s response to the legislation that was passed as part of SB 19-181?
Links Mentioned in this Episode:
Click here for our FREE IRS Mineral Rights Valuation and Tax Resource Guide.
IRS Mineral Rights Valuation:
- Turrett, LLC
- Rob’s Office Phone: 720-833-7090
- Rob’s Email: rprentice@turrett.com
- IRS Publication 551: Basis of Assets
- IRS Form 706: US Estate Tax Return
- IRS Form 709: US Gift Tax Return
- IRS Revenue Ruling 59-60: Valuation of Non-Traded Assets
National Association of Royalty Owners:
- National Association of Royalty Owners
- NARO – Colorado Chapter Facebook Page
- NARO Group inside the Mineral Rights Forum
- NARO National Office Phone: 1 (800) 558-0557
- Mineral Management 101 – FREE Online Course for Managing Royalty Interests
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