RESOURCES
TAX ADVANTAGES
Where we specialize in tax-advantaged energy investing. Our focus is on oil and natural gas projects that contribute to making our country more energy self-sufficient, reducing dependence on foreign imports.
Explore the tax incentives provided by Congress to stimulate domestic natural gas and oil production financed by private sources. These incentives, far from being loopholes, are designed to make participation in oil and gas ventures one of the best tax-advantaged investments for accredited investors seeking tax relief.
Income and Tax Exemptions
Active vs. Passive Income: Understand the distinction introduced by the Tax Reform Act of 1986 between “Active” and “Passive” income. Learn how a Working Interest in an oil and gas well is not considered a “Passive” activity, allowing deductions to be offset against income from active businesses.
Federal
Income Tax
Deductions
Available for
Joint Ventures
INTANGIBLE DRILLING COSTS (IDC)
IMMEDIATE TAX DEDUCTION IN THE YEAR COSTS ARE INCURRED. COSTS INCLUDE WAGES, REPAIRS, SUPPLIES, FUEL, SURVEYING, GROUND CLEARING, ETC
TANGIBLE DRILLING COSTS (TDC)
PARTLY TAX-DEDUCTIBLE IN THE YEAR COSTS ARE INCURRED. REMAINING TDC MAY BE DEDUCTED IN FUTURE YEARS. COSTS INCLUDE ACTUAL COSTS OF DRILLING EQUIPMENT.
PERCENTAGE DEPLETION
IMMEDIATE TAX DEDUCTION IN THE YEAR COSTS ARE INCURRED. COSTS INCLUDE WAGES, REPAIRS, SUPPLIES, FUEL, SURVEYING, GROUND CLEARING, ETC