New York Natural Gas Leasing Lawyer
If you own property in the Marcella Shale formation, you may be interested in leasing your land to an energy company for drilling rights. Along with the financial opportunities, however, come responsibilities for paying taxes on the signing bonus and royalties.
Experienced New York Natural Gas Tax Law Attorney
Before you sign any agreement for drilling on your property, get help understanding your income tax and property tax liabilities and options. Jacobowitz & Gubits, LLP, is recognized throughout New York for our skill and experience in all areas of natural gas drilling, leasing and tax law. With our substantial knowledge of the tax codes, we can structure your holdings and the lease agreements, to help you minimize the tax impact on your earnings.
Many property owners are surprised to learn that their property taxes will not increase because of the value of the natural gas recovered. The gas drilling company is responsible for taxes on the gas recovered. Learn more by reading the article Will My Property Taxes Go Up If I Sign a Gas Lease? By Jacobowitz & Gubits Senior Counsel Gary M. Schuster, Esq. and paralegal Penny Thelman.
Our attorneys have earned substantial recognition in the natural gas legal arena. Our published articles and knowledge are sought after by - corporate professionals and property owners throughout the region. How can a prominent New York natural gas law attorney lower your tax obligations? We invite you to learn more about our experience in the area of natural gas tax law by reading the following excerpt from an article written by our gas law attorney, Gary M. Schuster, Esq. Call us toll free at 866-535-4743 or contact us by e-mail to schedule a consultation.
Tax Implications of Oil and Gas Leases: “What You Wish For”
The old saying goes, “Be careful what you wish for.” If your dream comes true and gas is pumped from your land for years to come, you will be very handsomely paid. However, right behind those royalty checks will come the taxmen from the federal and state governments. It is never too early to start planning for legal ways to preserve wealth and reduce the tax liability for yourself and your family. The best time to structure how your assets are held is before the real cash -- the royalty money -- starts coming in. Tax planning must encompass your entire financial situation. Gas earnings cannot be considered apart from your employment, business, savings, investments and other assets and liabilities. Also, tax planning almost always involves designing ways to pass wealth from you to your heirs, so it is intertwined with estate planning.
Tax planning helps to determine how much taxes are paid, when they are paid and who will receive the remainder of your property. Why start early, before the money arrives? Estate planning involves not just making gifts in a will, but also making lifetime gifts. Federal tax law currently permits $1 million of lifetime gifting tax-free. Therefore, if you have assets that might appreciate over time, it is better to gift them sooner, while their value is relatively low. That way, more of your assets can be passed to heirs without triggering tax liabilities. Not only is lifetime gifting an attractive option, but it is also not necessary to make a gift of the entire asset. Assets can often be “fractionalized,” meaning that smaller portions of the assets can be transferred while the remainder is retained.
This article is available in its entirety on our resources page, under the heading of Natural Gas Law.
Get the facts about natural gas drilling and leasing agreements before you sign. Contact us to arrange a consultation with an experienced lawyer today. Jacobowitz & Gubits has offices in Walden and Monticello for your convenience. We provide legal advice and representation for clients throughout New York.
