Domestic Oil and Gas Production Favored In The Tax Code
The costs associated with drilling an oil and/or gas well are separated into three components: intangible drilling costs, tangible drilling costs, and lease or operation costs. Under the Tax Cuts and Jobs Act of 2017, the tax code allows investors to write off 100% of all investment costs in the year the investment is made – including tangible, intangible and lease costs – with a deduction limit of $1,000,000 without regard to the outcome of the drilling effort.
The main benefits of investing in oil include:
Several major tax benefits are available for oil and gas investors that are found nowhere else in the tax code. Read on, as we cover the benefits of these investments and how you can use them to fire up your portfolio.