businesses 1031 note

Oil & Gas Royalties

Roswell Escrow has the ability to handle the outsourcing of any stream of payments including oil & gas royalties, private loan servicing, estate distributions, and many others. If it has a stream of payments, we can probably service the contract.

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Oil & Gas 1031 Exchanges

Are Section 1031 Exchanges liimited only to real estate? No. Subsurface Minerals & Royalties are considered real property because ownership is conveyed by deed. 


Private Letter Ruling 8135048 States the exchange of overriding royalty interests for an apartment building, office building and 50% interest in a condominium is of like-kind.


Revenue Rule 55-526 IRS held that a royalty interest in oil and gas in place constitutes real property for federal income tax purposes.


Revenue Rule 73-248 IRS held that a royalty interest is an interest in real property for federal tax purposes.


Roswell Escrow has been offering 1031 Exchange services for over 15 years. We are knowledgeable in all areas of the exchange process and have acted as Qualified Intermediary for hundreds of clients. We will help guide you through the exchange process with detailed consultations to help you meet the necessary requirements of a legal exchange.


During a typical 1031 Exchange, Roswell Escrow, will create all the necessary paperwork throughout the entire process. We work with the title companies and/or attorneys on the sale of the relinquished property to ensure the exchange starts off correctly. A trust account in the name of your exchange is set up and all funds are put into that account with complete transparency so you always know where your money is. Because 1031’s have a very strict time limit, we make sure everything is done by the book.


Roswell Escrow strongly recommends the consultation of a knowledgeable CPA or tax attorney when entering into a 1031 Exchange.