Borger

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I know some Bagwells in that area, they just arent from Big Spring

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The ones I'm thinking of owned a BBQ/restaurant/convenient store I believe. I lived with one of their sons in college.

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Wait..so other towns in Texas other than Lubbock and Hereford smell like ass?

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If West Texas were its own state, ass stench would be on the state flag.

Ah, no. The ones I know arent from Big Spring, just that general area of Texas

I'm kinda scared now that skran has my contact info.

Instead of a tax liability, she can make it a tax write-off.

Simply donate it to my non-profit organization - The B-1 Foundation for Golf and Fishing Research - and I'll take good care of it.

I would be too. You should have hired a professional

Hereford can kiss my ass! Place smells like crap and the people that actually live there are asswholes...

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I'm kinda scared now that skran has my contact info.

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Cat facts

Camel facts

Daily poop picture

West Texas has done more for you people that you realize or are willing to admit.

I'd be a little more appreciative of that area as it tends to take one for team in terms of smells, oil and gas production, and ugly windmills if I were you, rather than being a bunch of suburban new strip center ingrates.

[This message has been edited by BarnacleScraper (edited 8/14/2014 10:42a).]

Tax Answers:

It sounds like she received the mineral rights as a gift. If so, she has "basis" equal to whatever her grandparents paid for it. Does she just own the mineral rights or the land also? Usually the mineral rights have very little basis unless purchased outright. If she received it as an inheritance, her basis is equal to value of mineral rights on date of inheritance. A probate inventory would help with that.

Either way, taxation is based on sales price less her basis in the mineral rights. Capital gains rate applies. Generally max of 20%. However, depending on other income, the additional medicare tax on investment income could also apply (thanks Obama).

No, she cannot reinvest to defer the gain. The only way to do that is a 1031 exchange where she purchases property of like kind within a certain period of time. You generally never take possession of the proceeds from sale but rather roll it over directly into the new asset.

But, I should stipulate, it depends She should totally seek the advice of her own tax professional for special circumstances that might apply in her situation.

West Texas is real. Did you not know that?

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Tax Answers:

It sounds like she received the mineral rights as a gift. If so, she has "basis" equal to whatever her grandparents paid for it. Does she just own the mineral rights or the land also? Usually the mineral rights have very little basis unless purchased outright. If she received it as an inheritance, her basis is equal to value of mineral rights on date of inheritance. A probate inventory would help with that.

Either way, taxation is based on sales price less her basis in the mineral rights. Capital gains rate applies. Generally max of 20%. However, depending on other income, the additional medicare tax on investment income could also apply (thanks Obama).

No, she cannot reinvest to defer the gain. The only way to do that is a 1031 exchange where she purchases property of like kind within a certain period of time. You generally never take possession of the proceeds from sale but rather roll it over directly into the new asset.

But, I should stipulate, it depends She should totally seek the advice of her own tax professional for special circumstances that might apply in her situation.

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Just the minerals, not the land and it was part of an inheritance.

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West Texas has done more for you people that you realize or are willing to admit.

I'd be a little more appreciative of that area as it tends to take one for team in terms of smells, oil and gas production, and ugly windmills if I were you, rather than being a bunch of suburban new strip center ingrates.

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I'm from Gonzales. You act like West Texas is the only place in TX that's taken some crap for the better of the state. My hometown has turned into a freaking RV camp with crime up across the board compliments of the trash that O&G tends to bring with it.

I didn't read the thread but never ever sell minerals...ever.

Pretty sure that oil was there before you but I bet you feel like an American Indian now huh?

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West Texas has done more for you people that you realize or are willing to admit.

I'd be a little more appreciative of that area as it tends to take one for team in terms of smells, oil and gas production, and ugly windmills if I were you, rather than being a bunch of suburban new strip center ingrates.

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I'm from Gonzales. You act like West Texas is the only place in TX that's taken some crap for the better of the state. My hometown has turned into a freaking RV camp with crime up across the board compliments of the trash that O&G tends to bring with it.

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What's your take on the economic boom O&G has brought to the area?

West Texas has been that way for a long, long time.

And no one really thinks of Gonzales in the same way they do West Texas, so I wouldn't go so far as to equate the two. I'm also pretty sure that the "oilfield trash" you dislike has brought more money and more opportunity to that area of Texas than it's seen since the Chalk boom.

[This message has been edited by Natasha Romanoff (edited 8/14/2014 10:53a).]

Hasnt that area always been crime ridden with non-resident aliens?

(I hear calling them illegal immigrants is now offensive)

Edit: for ColinAggie

[This message has been edited by histag10 (edited 8/14/2014 10:53a).]

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West Texas has done more for you people that you realize or are willing to admit.

I'd be a little more appreciative of that area as it tends to take one for team in terms of smells, oil and gas production, and ugly windmills if I were you, rather than being a bunch of suburban new strip center ingrates.

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I'm from Gonzales. You act like West Texas is the only place in TX that's taken some crap for the better of the state. My hometown has turned into a freaking RV camp with crime up across the board compliments of the trash that O&G tends to bring with it.

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What's your take on the economic boom O&G has brought to the area?

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Honestly, not too much has changed. There are a few more businesses, but the people that had the money before are the ones that are getting all the new money from the O&G. Not that I hold anything against them for it, it's just the way that works with land and mineral rights. I've got some mineral rights there, but it's super small compared to others. A lot more of the money is leaving the town than is staying in it.

Except you have many companies hiring local folks to do the various jobs required of oil and gas operations and these people are bringing in MUCH higher salaries than they otherwise would have been able to with their education. While many of these people may not see the gobs of money that the mineral rights owners see, they are still seeing a huge economic impact thanks to the Eagle Ford.

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Hasnt that area always been crime ridden with non-resident aliens?

(I hear calling them illegal immigrants is now offensive)

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Not necessarily crime ridden, it's never been below average, but was usually on the cusp of average. Lately they've seen a huge influx in harder drugs. Cocaine, crack, meth, heroine, etc.. DWIs are through the ceiling and number of 18-wheeler related deaths are up astronomically.

see below

[This message has been edited by 94DallasAG (edited 8/14/2014 11:00a).]

The Oil Boom has brought big city crime to the Permian Basin.

http://www.newswest9.com/story/25320663/argument-over-corn-dog-ends-with-woman-behind-bars-in-midland

Seems fitting here

Colin, all of those issues are expected with a larger population. Pure statistics. If you have 1000 people in town and have 3 fatal wrecks and 2 drug busts, and your population goes up to 5000, you should expect your fatal wrecks to go up to 15 and your drug busts to go up to 10.


This is what oil brought up here:
http://www.kxlh.com/news/two-people-sentenced-in-glendive-murder-case/

[This message has been edited by histag10 (edited 8/14/2014 11:03a).]

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Except you have many companies hiring local folks to do the various jobs required of oil and gas operations and these people are bringing in MUCH higher salaries than they otherwise would have been able to with their education. While many of these people may not see the gobs of money that the mineral rights owners see, they are still seeing a huge economic impact thanks to the Eagle Ford.

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True. I didn't necessarily look at it from that perspective. Some have been fortunate enough to get those jobs, but from what I've seen, the majority of them are still from out of town. Lots of commuters. Also, the people that have gotten those jobs are too stupid to know what to do with the money. They usually tend to blow it on stupid crap. Something I'm concerned about is what will happen when the drilling and pipe welders are done in Gonzales. That's where the influxes came and a lot of locals jumped on crews that aren't permanently in Gonzales and some of these people haven't traveled more than 100 miles from Gonzales. I'd venture to guess that we'll see a bump on unemployment (though it's at like 3.5% in Gonzales County right now) after the majority of drilling is completed (3-5 more years from what I've been told. I'm not O&G, really have no clue on that).

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Colin, all of those issues are expected with a larger population. Pure statistics. If you have 1000 people in town and have 3 fatal wrecks and 2 drug busts, and your population goes up to 5000, you should expect your fatal wrecks to go up to 15 and your drug busts to go up to 10.

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We never had hard drugs like that. There was just a bust about six weeks ago that netted over $1MM street value of heroin, crack, and meth.

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Honestly, not too much has changed. There are a few more businesses, but the people that had the money before are the ones that are getting all the new money from the O&G. Not that I hold anything against them for it, it's just the way that works with land and mineral rights. I've got some mineral rights there, but it's super small compared to others. A lot more of the money is leaving the town than is staying in it.

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Yup, the old money is getting richer and the have nots may be riding in a new truck but will they be able to afford the next one and the next one? I see lot of folks blowing through $$$ like it will always be there.

That's the nature of the oil industry throughout history. Boom and Bust and those people who always have the money weren't always those people. Rather than take their money and buy new big trucks and boats, they saved and bought when the bust came. They didn't just become those people with money out of thin air.

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Colin, all of those issues are expected with a larger population. Pure statistics. If you have 1000 people in town and have 3 fatal wrecks and 2 drug busts, and your population goes up to 5000, you should expect your fatal wrecks to go up to 15 and your drug busts to go up to 10.

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We never had hard drugs like that. There was just a bust about six weeks ago that netted over $1MM street value of heroin, crack, and meth.

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I bet much of that isn't because of the O&G industry, but because Gonzales is a small town that is situated closely to major Texas cities, so it's a convenient hub for the drug cartels to park their goods before taking it to the major cities to distribute. While O&G may contribute some to increased drug use, the more likely source for that large of a supply of hard drugs is drug trafficking to major cities.

But I will give you oilfield trucking incidences. It's a huge problem and needs to be addressed more aggressively by businesses operating in the area. On the flip side, counties could quit being greedy with the income they're receiving and actually improve the roads they are responsible for.

[This message has been edited by Natasha Romanoff (edited 8/14/2014 11:18a).]

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Colin, all of those issues are expected with a larger population. Pure statistics. If you have 1000 people in town and have 3 fatal wrecks and 2 drug busts, and your population goes up to 5000, you should expect your fatal wrecks to go up to 15 and your drug busts to go up to 10.

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We never had hard drugs like that. There was just a bust about six weeks ago that netted over $1MM street value of heroin, crack, and meth.

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I'm guessing its always been there, they just never got caught.

Small town Texas has really become just a place where people leave to better themselves or stay, do drugs and get on disability for the rest of their lives and thus are disincentivised to better themselves.

The social welfare system has crumbled small town Texas, not the oil & gas companies or drug dealers.