Get Unique Tax Benefits by Investing in Oil and Gas

Investments made in domestic oil and gas development still have some of the most favorable tax incentives available in the Tax Code. Contact us at [phone] or visit www.patriotener... to learn more about how you can save on your taxes with oil and gas investing.
Video Transcript:
An oil and gas well like this one in west Texas could help you save substantially on your taxes this year. How? Through a favorable provision Congress & President Reagan gave us in 1986 - specifically Intangible Drilling Costs, which can offset active income, giving you maximum tax advantages from your participation.
There are many things here that are considered intangible costs. Labor, for example. This rig will work 24/7 - rain or shine - until everything has been completed and the rig is loaded up on trucks and headed to its next destination. These round-the-clock crews are part of intangible costs.
So is drilling mud, which is a substantial part of a well’s budget. You can’t drill without drilling mud, and because it is an expendable item, it comes under Intangible costs.
There are other miscellaneous expenses that are incurred to bring this well to depth that also comprise intangible expenses. In all, about 80-percent of the cost of this project will be considered intangible.
Even though oil and gas investing is a passive activity, these specific costs can be deducted against active income 100% in the year you make the investment, and the rest is amortized over 5-7 years, so a full 100-percent of your part in this well will eventually be written off your gross income.
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