As high net worth individuals seek out tax-advantaged investments, one industry continues to stand out from the rest – the oil and gas industry. Oil and gas investments tax deductions are incentives created by Congress to spur domestic growth in production as a means of marching the United States towards energy independence.
Some of the top oil and gas tax deductions include:
For a detailed look at each of these oil and gas tax deductions, please see our article, “Tax Deductions and Advantages Available for Direct Oil & Gas Investments.”
For drilling-related deductions to be eligible for use on your 2021 taxes, money must be invested by December 31, 2021 and drilling operations must begin by March 31, 2022.
The above general discussion is provided for background information only. This information is not intended to be individual advice. Prospective participants should consult with their personal tax professional regarding the applicability and effect of any and all benefits for their own personal tax situation. In addition, tax laws change from time to time and there is no guarantee regarding the interpretation of any tax laws. For more information, please visit www.irs.gov.