What Are the Tax Advantages in Oil and Gas Investing

Oil and natural gas ventures are one of the best tax advantaged investments available. Different states offer different tax exemptions into this venture as well as the Federal Government. They offer these incentives to promote domestic drilling of oil and natural gas.

Small producer exemptions, also known as percentage depletion allowance. This incentive allows for a percentage of the gross income from oil and gas producing property to be tax free. Texas for instance offers 15% as small producer as an oil and natural gas tax advantage exemptions.
Tangible drilling costs and intangible drilling costs are yet another form of tax deductions that some states offer in this investment. Most governments encompass this to include the actual direct costs of drilling equipment, deductible after a given number of years. Some states set the number of years  meaning that at the end of set number of years, the costs of these equipment (s) are 100% tax exempted.
Lease costs are also deductible in the year that they are incurred. These costs could include accounting expenses, lease operating costs, purchase of lease and mineral rights and so on. They cover the day to day operations of the well, and as well, the costs of re-entry or re-work of an existing producing well.

Our 28 page investors guide will help you determine who is the right expert to choose, what opportunities are available, the oil and gas tax advantages, accounting procedures and the required due diligence you will need to conduct before making your investment.

Energy Equity Group is an independent oil and gas company specializing in acquisition, exploration, production and development of oil and natural gas properties and leases, as well as renewable energy solutions, including wind, solar and biomass.

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An accredited investor , in the context of a natural person, includes anyone who earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

 

 

 

 

There Great Tax Advantages in Oil and Gas

Valued at around $7 trillion globally, energy is the most valuable market segment on earth.

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