The only tool of its kind anywhere: an answer engine trained on the Internal Revenue Code's oil & gas provisions, Treasury regulations, the IRS's own oil & gas audit-technique guide, hundreds of verified investor FAQs, and a proprietary database of millions of U.S. well records. It answers like a CPA, a petroleum geologist, and a landman rolled into one — instantly, with citations.
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See Our Current Investment »This free tool answers oil and gas investment tax questions in plain English with citations to the Internal Revenue Code, Treasury regulations, and IRS publications. It computes year-one deductions, models multi-year cash flow with tax savings, and tailors numbers to your income, filing status, and state when you share them. It is the only public tool that combines a complete oil & gas tax-law library with live well data and built-in investment calculators.
The engine runs on a retrieval-augmented knowledge base of nearly 3,000 indexed passages: the oil & gas sections of the Internal Revenue Code and Treasury regulations, IRS publications and audit guidance, court rulings, verified investor FAQs, current-year tax brackets and thresholds, and deterministic financial calculators (deductions are computed, not guessed). Every answer cites its sources. Questions it can't fully answer are logged and used to expand the knowledge base — the engine gets smarter every week from real investor questions and feedback.
Typically 75–85% of a drilling investment is intangible drilling costs, 100% deductible in year one under IRC §263(c); the remaining tangible equipment costs are currently 100% deductible through bonus depreciation — so most direct participants deduct effectively the entire investment against active income in year one if they hold a working interest.
Yes — a working interest held directly (not through an entity that limits liability) is excepted from the passive-loss rules by IRC §469(c)(3), so drilling deductions offset wages, business income, and other active income without the usual passive-activity limits.
Yes — independent producers and royalty owners may deduct 15% of gross income from each property under IRC §613A, within the 1,000 barrel-per-day and 65%-of-taxable-income limits, and the deduction continues even after the investment's cost basis reaches zero.
These are educational summaries, not tax advice. Ask the engine above for the full cited answer, or talk to us about how they apply to a live project.
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