AboutLaura M. FitzGerald, CPL Expertise I can answer all questions related to any oil and gas leases, mineral sales, pipeline right-of-ways, LA Dept of Conservation Units; negotiating with landmen for leasing your property, assisting in locating owners of suspended funds.
Experience 26 years in the field and owning my own land services company; being a royalty owner, and participating in drilling wells
Organizations American Association for Professional Landmen, ArkLaTex Assoc. of Professional Landmen, and Dallas Association of Professional Landmen (DAPL), Women's Business Enterprise National Council (WBENC)
Education/Credentials Certified Professional Landman, attended LSU, Notary Public
Question Several years ago I bought, from a friend, a portion of his working interest of a well that has been producing for years. My question is, is there any way to switch to a royalty interest to avoid having to pay self employment taxes on my income?
Thank you,
Richard
Answer No sir, a "Working Interest" cannot be converted to a "Royalty Interest" because they are created out of two separate estates of title. The Working Interest is created out of the leasehold title, while the royalty interest is created out of the mineral owner title.
