How Form 8865 Revenue 2024

Everyone, Joshua Pollard, was just a little guy on Twitter. Off-topic, does your landscaper feel the need to run you over as well? I mean, how hard is it to pick up a frickin frisbee and move it two feet? I mean, seriously, seriously, am I sorry for that? I get off on a rant every once in a while. - In this video, I want to talk about working interest, net revenue interest, and overriding royalty interest. I want to make another video, but I don't know if I'll get to it today. I won't draw it out all pretty on a dry erase board for you, but my email will be below the video if you have any questions. - Working interest is like owning a house. When you sign a lease, you own 100% of the oil well. Net revenue interest is the revenue after you pay overrides and the mineral owner overrides. Typically, 18 to 25% of everything that comes out of the ground goes to the mineral owner. - Overriding royalty interest is a one-way street. You just make money and don't have to pay anything. It's awesome if you can get it cheap, though it's typically not cheap. - Back to working interest, let's say we have a well. We own 100% of the well and have to pay 100% of the cost. If you own 10% out of the 100%, you have to pay 10% of the operating cost and drilling costs. Typically, operating costs and river costs are different, so I won't get into that. If you own working interest, you have to pay the bill for anything like injecting water or electrical service. - Net revenue interest, as the name suggests, is the net revenue after paying the mineral owner and...