Faqs
GENERAL QUESTIONS
It is a unit of beneficial interest, but basically it is the same thing as a share of stock. The units of the Trust are traded on the NYSE just like shares of stocks of other companies.
No. The trust cannot buy or sell the units. You will need to do that through your broker.
No. The trust cannot have a DRIP program set up. You may be able to set that up through your broker.
No. That is a decision that you should make in conjunction with your financial advisor or broker.
No. The Trust is a grantor trust. The trust does not have a specific end date. There are, however, some events that could cause the trust to terminate:
- If there are two successive fiscal years In which the Trust’s gross revenues from the Royalty Properties are less than $2,000,000 per year,
- A vote of Unitholders.
Once the decision has been made to terminate the Trust, the Royalty Properties will be sold for market value and the cash received from the sale less any applicable administrative costs will be distributed to the Unitholders of record at that time.
No. We don’t maintain any Unitholder records here. You will want to contact your broker or the transfer agent to make sure that they have the correct address in their records.
TAX QUESTIONS
Although the deadline imposed by the IRS is not until April 1st, we generally have the booklets and yellow worksheets mailed by March 1st.
No. The distributions are considered royalty income and are ordinary income, taxed at your marginal rate.
No. The distributions are considered ordinary income and taxed at your marginal rate.
We are considered a grantor trust, not a partnership and do not have the same reporting requirements that a partnership does. The cash distributions are reported on a 1099-Misc form by your broker.
The yellow worksheet contains important tax information for the current year just ended. You should compare the information regarding the number of units and dates you were a unitholder of record located approximately 2/3 from the top of the page with your records to determine that the correct information was reported to the Trust. Once you have determined that the information is correct, then you can use the dollar amounts located approximately half-way down the page to report on the appropriate schedules on your tax return. If the information is not correct, then you must determine your proportionate share of the Trust revenues and expenses using the tax booklet that was included with the yellow worksheets.
SPECIFIC QUESTIONS
If there is a difference between your records and what the yellow worksheet shows, then you should contact your broker to compare the number of units owned and the times for which those units were owned. You will need to calculate your proportionate share of the revenues and expenses for the Trust manually using the tax booklet that came with the yellow worksheet, as we cannot provide an amended worksheet.
If there is a difference between your records and what the yellow worksheet shows, then you should contact your broker to compare the number of units owned and the times for which those units were owned. You will need to calculate your proportionate share of the revenues and expenses for the Trust manually using the tax booklet that came with the yellow worksheet, as we cannot provide an amended worksheet.
If you have changed brokers, added or made changes to accounts already with your broker; or if you hold units with more than one brokerage firm, you will receive a yellow worksheet for the units held with each firm. Sometimes if brokerage firms have merged, the information is not merged together into one system. All of the above scenarios can result with you receiving more than one yellow worksheet. Usually if you add the worksheets together, it will equal the total units you own for the period your records show you owned those units. If adding the yellow worksheets together does not match the information in your records, then use your records and the tax booklet to calculate your proportionate share of the trust income.
No, this information is contained in a static database that cannot be changed or amended. You will need to calculate your proportionate share of the revenues and expenses for the Trust manually using the tax booklet that came with the yellow worksheet.
No, this information is contained in a static database that cannot be changed or amended. You will need to calculate your proportionate share of the revenues and expenses for the Trust manually using the tax booklet that came with the yellow worksheet.
No. Your best course of action is to calculate your information using the forms provided in the booklet and then try and duplicate the forms in your software. If that doesn’t work, you should call the software manufacturer and speak to them about the specific forms used and how to fill them out.
No, you do not report any trust income in an IRA or other tax-deferred account.
DEPLETION QUESTIONS
The cost basis is the total purchase price plus any commissions paid.
No. Since we don’t maintain any Unitholder records, you should consult your broker or review your files for that information.
You should use 12/31/1982 for your purchase date.
No. You will need to calculate the depletion for each block of units purchased separately.
You sold your units before the first record date of that particular year; therefore you only owned the units through the previous year.
Disclaimer
The information contained in this section of our website is concise and is intended to only be a summary. Therefore, any information provided may not be complete. Unitholders are encouraged to read the Trust Agreement which is the document that describes the rights of Unitholders. Also, in the event of a conflict between anything described on our Website and the terms of the Trust Agreement, the Trust Agreement shall control. Furthermore, the federal, state and local tax consequences, and associated tax filing responsibilities, to a Unitholder of the ownership and sale of Units is dependent in part on each Unitholder’s specific tax circumstances; therefore, Unitholders should consult their own tax advisors regarding all tax issues concerning the ownership and sale of Units. The Trust exercises thorough effort to ensure the accuracy of the content of this Website, but makes no warranties as to the site’s accuracy or completeness and shall in no way be responsible for any loss or damages resulting from inaccuracies in information or any alterations made by third parties.
