Did you know the opportunity to legally avoid paying capital gains tax on proceeds from the sale of real property can apply to mineral interests? This article includes a helpful description of several types of mineral rights, and whether they are “exchangeable” under Internal Revenue Code Section 1031.
Did you know the opportunity to legally avoid paying capital gains tax on proceeds from the sale of real property has an expiration date? Under Internal Revenue Code Section 1031, you must follow specific procedures to identify replacement property within 45 days after the property being given up is transferred. Also, you must receive the replacement property by the earlier of (i) the 180th day after the date you transferred the property being given up in the exchange or (ii) the due date of your tax return (including extensions) for the year in which you transferred the property given up.
Did you know that under the right circumstances you can legally avoid paying capital gains tax on proceeds from the sale of real property? As a general rule, under Internal Revenue Code Section 1031 you are not required to recognize a gain or loss when you exchange real property held for productive use in a trade or business, or for investment, if such real property is exchanged for real property of like kind.
Have you ever had your oil and gas royalties withheld in suspense due to a title issue? If so, did you know that the operator is required to pay you interest on the amount held in suspense? Interest is owed at 6%, compounded annually, for time periods prior to Nov 1, 2018. Thereafter, interest is owed at the prime interest rate reported by the Wall Street Journal. See Oklahoma Statutes Title 52 Section 570.10 for more information.
Did you know that oil & gas operators are required to pay royalty owners interest on late royalty payments? If you receive oil & gas royalties, the operator must pay you within 6 months of the first sale of production and thereafter by the end of the second month following subsequent sales. If they do not pay within this time, you as a royalty owner are owed interest at 12%, compounded annually, on the unpaid royalties. In most cases, even if you are entitled to unpaid interest, the operator may not pay you automatically. You may have to expressly request interest on late payments from the operator. See Oklahoma Statutes Title 52 Section 570.10 for more information.
Did you know that failing to include your social security number on your division order can cause an approximate 28% deduction on your royalty check? If you live in Oklahoma, you should be exempt from the State Withholding deduction. However, if you have not provided your SSN or EIN to the Operator of your well, each check could be reduced by approximately 28%. See this blog post for more information.
Preparing an estate plan is crucial and the first step to getting your affairs in order. However, once your estate plan is prepared, it’s not meant to sit and collect dust, only to be forgotten. Your estate plan needs to be reviewed to ensure your desires are still aligned with your life and the law.
Estate planning documents aren’t enforceable until they’ve been signed. Make sure all your documents have been properly executed, notarized, and witnessed, if applicable. Out of date or unsigned documents are the same as having no documents at all. Once they’re signed and up to date, put them in a safe place such as a fireproof safe, safe deposit box, or with a trusted attorney or advisor. Make sure a family member or close friend knows the whereabouts of these important documents.
You cannot simply gift your assets to someone else to prepare for nursing home costs. The “look back” period is the five year time period wherein Medicaid will look at your financial records to see if you have made any transactions that would render you ineligible for benefits. If you find yourself facing a nursing home in the near future, you should understand your options. There are ways to spend your assets on items that do not trigger a penalty period for nursing home coverage. Your Medicaid caseworker may not always tell you your options, so it’s important you do your own research and understand the tools given to you.
The average Nursing Home costs is around $5,000 each month. Most families cannot afford this cost and estates are quickly spent down to cover the cost of care. The truth is there are tools given to you to prevent this from happening. The first part of understanding Medicaid and nursing home costs is understanding the terminology. You have the right to educate yourself against spending all of your hard-earned assets.
According to the US Small Business Administration, in the year 2018 Oklahoma had 347,165 small businesses accounting for 52% of Oklahoma employees. More and more people are becoming entrepreneurial and starting their own business. There are many benefits to owning your own company. Remember to visit with your business planning attorney to ensure proper legal structure of your business to protect your personal assets and reach your goals.