OIL & GAS INVESTMENTS
DIRECT PARTICIPATION TAX ADVANTAGES
Federal income Tax Deductions Available:
Intangible Drilling Cost (IDC)
Immediate tax deduction in the year cost are incurred ( approximately 70% for new drilling ventures)
Tangible Drilling Cost (TDC)
100% Tax deductible over 7 years
Depletion
Tax deductible for statutory depletion (15% of gross income is tax free subject to certain limitations)
Lease Operating Cost
100% Tax deductible
IRS Code
See page 25 in IRS PUBLICATION 535, No.15065z
https://www.irs.gov/irm/part4/irm_04-041-001
