@Larry Nielsen I like Jonathan's suggestion, but I think an important decision for you is what is your goal.

As far as I know there isn't clear guidance on this topic from the IRS, but most professionals take a similar view as Melanie above.

Considering paying but there doesn't seem to be any guarantee or data to help me make the decision.

Again, the BiggerPockets store has some books on this topic, or you can learn about it by watching podcasts, reading blogs, and interacting on the forum.

.: @Jonathan Greene- good topic. 

Before making your final decision, I'd suggest running the numbers both ways - calculate your tax liability versus the potential long-term impact of accepting those unfavorable terms you mentioned.

Here are some previous posts about the potential reality of investing in these types of markets: https://www.biggerpockets.com/forums/12/topics/1171104-the-m...https://www.biggerpockets.com/forums/48/topics/1159104-overl…

If we find Lithium somewhere, that may also be a hot topic like it is in SW Arkansas right now.   

You’ll also pay transaction fees disposing the asset, likely in the $40k+ range.I don’t think you have a clear-cut answer here, but you’ll need to rack up all the financial trade-offs to make an informed decision.

I would work with/or establish a team that knows that market well so that I could make a good business decision.