§453 · Black Stone Minerals Acquisition Tax Strategy

Black Stone / Kimbell / Brigham Royalty Sale — Defer the Tax

The mineral rights consolidation cycle continues. Black Stone Minerals (NYSE: BSM), Kimbell Royalty Partners (NYSE: KRP), Brigham Minerals (NYSE: MNRL), Sitio Royalties (NYSE: STR), Viper Energy Partners (NASDAQ: VNOM), PHX Minerals — plus private mineral aggregators — pay strong multiples for producing acreage in the Permian, Eagle Ford, Bakken, Haynesville, and Marcellus.

§453 Mechanic — How the Money Flows

Buyer cash → Assignment Co. → A-rated carrier → You, on schedule

BUYER pays full cash at closing ASSIGNMENT CO. qualified entity, regulated purchases annuity A-RATED CARRIER A-Rated Carrier A+ rated · A.M. Best SELLER (you) paid on chosen 5-30 yr schedule Closing day — one wire, one assignment Gain recognized proportionally each year per IRC §453 (Treas. Reg. §15A.453-1)

A $3M royalty interest sale with $50K basis (inherited or low purchase) = $2.95M gain. Lump-sum tax = $1.1M+ in year one for CA / NY residents.

The math — $3M mineral / royalty sale, low basis

StateLump-sum tax10-yr §453Delta
California~$1.13M (38%)~$0.72M (24%)$407K
New York~$1.04M~$0.65M$390K
Oklahoma~$0.85M~$0.55M$300K
Texas / Wyoming / SD / Florida~$0.71M~$0.43M$280K
North Dakota~$0.78M~$0.50M$280K

Black Stone / Kimbell / Brigham deal mechanics

  1. NMA (Net Mineral Acres) valuation — per-NMA based on cash flow + remaining reserves.
  2. Producing vs non-producing acreage — different valuations.
  3. Royalty interest vs working interest — royalty = capital gain on sale. Working interest = mixed character.
  4. Percentage depletion (15%) deduction stream ends at sale.
  5. Inherited basis (step-up at death) — may reduce gain meaningfully.
  6. Closing typically 60-90 days — §453 paperwork fits easily.

When this fits

  • $1M+ royalty interest sale (carrier minimums)
  • Royalty (not working) interest
  • Producing acreage with cash flow record
  • Major aggregator buyer (all have done §453)

How I work

Hans Goldstein, IRC §453 specialist. an A-rated Fortune 500 carrier / an A-rated Fortune 500 carrier / an A-rated Fortune 500 carrier / an A-rated Fortune 500 carrier — 50 states. Free fit-check.

Hans Goldstein, NPN 20602398

📘 Get the free Seller's Guide to §453 + a fit-check

A plain-English guide for sellers: how a structured installment sale defers the tax when you sell a business, practice, or property — the math, the alternatives, and how to know if your deal fits.

Drop your info — instant PDF download + within 1 business day Hans will email a preliminary read on which structure fits your deal. No retainer. Carrier compensates the broker — not you.

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📞 Hans Goldstein · 470-329-8049 · CA Insurance License #4322192 · Independent §453 specialist · Goldstein & Co. LLC

Educational. Not tax or legal advice. Goldstein & Co. is not affiliated with or endorsed by Black Stone Minerals, Kimbell Royalty Partners, Brigham Minerals, Sitio Royalties, Viper Energy Partners, or PHX Minerals.

Run your specific numbers

The calculator runs your sale through real 2026 federal + state tax brackets and shows §453 savings vs lump sum side-by-side.

Run the calculator → 470-329-8049

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