Question:
I want to sell royality rights--gas& oil, take the money and purchase land. Can I avoid the taxes in a like-kind exchange?
Answers:
Sounds like you are talking about mineral rights, if the new property has mineral rights and the price of the mineral rights can be separated out from the property, it would be a like-kind exchange if to the extent of mineral rights for mineral rights. You will have to file form 8824. Note:They must be for investment or business the Properties are of the like kind must be of the same nature or character, even if they differ in grade or quality.
No Royalty rights are treated differently.
See if there is a Stewart Title company near you and make the call. I think the answer is no but, you should call a professional and they will answer this, at no charge I think. Ask about the fee first.
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