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Tax Questions: Do I pay more taxes by taking a lump-sum payment?

April 26, 2017lump-sum pay payment taking tax taxes

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Tax Questions: Do I pay more taxes by taking a lump-sum payment?

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Right now, you probably pay ordinary income tax on your royalty payments. When you convert your lease/easement, in many cases the lump sum payment may be eligible for the lower capital gains tax rate. AWCC is not a tax advisor and strongly recommends that you consult your tax professional.