Oil and gas investments shine through unique tax perks like depletion (deducting resource exhaustion), percentage depletion (a percentage-based ongoing write-off), and IDCs (immediate expensing of drilling intangibles).

Pass-through entities, such as partnerships, LLCs, and publicly traded partnerships (PTPs), can be powerful investment vehicles for individuals seeking to benefit from the tax advantages available in the oil & gas industry.

These provisions: depletion, percentage depletion, and intangible drilling costs (IDCs) are powerful levers for the right investor and can significantly reduce taxable income if applied correctly.

Investing in oil and gas isn’t just about riding the waves of energy markets; it’s also a strategic way to tap into unique tax advantages built directly into the U.S. tax code.