Pennsylvania Assignment of Production Payment Measured by Quantity of Production

State:
Multi-State
Control #:
US-OG-293
Format:
Word; 
Rich Text
Instant download

Description

This form is used when the Assignor transfers, assigns and conveys to Assignee a production payment measured by the quantity of production.

How to fill out Assignment Of Production Payment Measured By Quantity Of Production?

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FAQ

While there's no way to avoid paying taxes on money you make from your minerals, there may be ways to help soften the blow. If you sell your royalties, you might qualify for the lower capital gains tax rate and save money on your taxes. A 1031 like-kind exchange can potentially help you save even more.

(1) The term production payment means, in general, a right to a specified share of the production from mineral in place (if, as, and when produced), or the proceeds from such production. Such right must be an economic interest in such mineral in place.

26 U.S. Code § 636 - Income tax treatment of mineral production payments. A production payment carved out of mineral property shall be treated, for purposes of this subtitle, as if it were a mortgage loan on the property, and shall not qualify as an economic interest in the mineral property.

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Pennsylvania Assignment of Production Payment Measured by Quantity of Production