TAX BENEFITS OF OIL AND GAS INVESTMENTS

For accredited investors, by far, the strongest tax advantages are in oil and gas development.

Federal tax laws intended to spur domestic oil and gas production have created substantial tax incentives for investors and small producers. An oil and gas investor can write off their entire investment that year from their active or ordinary income. Since ordinary income is the most difficult to shield from taxation, investing in oil and gas is a powerful option.

An accredited investor at a 45% tax bracket can possibly end up with only a 10% exposure of risked capital on a working cash basis vs paying taxes outright.

Turning dead tax dollars into income and profits is a powerful tool to create and preserve wealth by investing in oil and gas development.