Surface and mineral rights

[tst]

Purchased property for investment land in 2010 for $55,000. No breakdown in basis for surface versus mineral rights at purchase.

In 2014 sold surface rights for $69000

Mineral rights were sold for $235000

Relinquished all rights. No royalties. Outright sales

Sch D SURFACE RIGHTS $69000 sale with $55000 basis? Cap gain

Sch D mineral rights $235000 sale with zero basis? Cap gain?

Any thoughts on basis for mineral rights?

[rfassett]

Lacking an appraisal specific to the mineral rights, I would allocate the basis in accordance with the sales prices. i.e., 69,000 / (69,000 + 235,000) x 55,000 for the surface rights.  And the balance of the 55,000 allocated to the mineral rights.  Yes - long term capital gain for both transactions.

[tst]

Thanks...appreciative.