If you are Social Security Disability Insurance, SSDI, and receive royalties from the production of oil and gas, your monthly benefit amount could change. Depending on how much you make, you may receive fewer benefits each month. However, you can sell your royalty rights so they don’t affect your monthly income. At H&M Land and Mineral, we are in the business of buying oil and gas royalties, so you can contact us when you are ready to sell.
What is the Risk?
When you lease your property and extraction rights to a company capable of extracting the oil and gas from it, you will receive a royalty payment from the company’s revenue when they sell the oil and gas from your property. The payment you receive is unearned income according to the Internal Revenue Service and you have to report it every year. When you claim it on your taxes, the income you earn can reduce your SSDI benefit amount.
Earning Extra Income
When you are on SSDI, you can earn extra income each month, but it cannot be past a certain amount. Earnings that are more than $1,000 per month are substantial according to the Social Security Administration, who is responsible for overseeing your SSDI benefits. People who earn a “substantial” amount, may no longer receive SSDI benefits. By buying oil and gas royalties from you, you may be able to avoid losing your benefits.
Selling Your Royalties
By buying oil and gas royalties from you, you are still able to retain the rights to your land and the buildings on it, just not to the mineral rights. Selling your royalties may be a transfer of resources, not a gain in resources. This could allow you to keep your SSDI benefits. However, before you take our word on this, contact a tax professional if you are thinking about selling your royalties.
Our business is interested in buying oil and gas royalties, so if you are considering selling them, contact us directly. We will make an assessment based on several factors, including the average production from your land, the market value of the minerals and the total value of your mineral rights. Our team of buyers, assessors and other experts will make a fair assessment for your royalties.
No Obligation to You
Before buying oil and gas royalties, our buyers will give you the value of your mineral rights and make you an offer. However, you are under no obligation to sell your royalties to us. The assessment will not cost your anything and you can always turn it down. If you do accept it, we will research your lease agreements, then buy your royalties, close the sell and pay you right away.