1031 Exchange: Oil and Gas Properties Tax Benefit

Services for Real Estate Pros with Castle United, 1031x.com

The 1990 Tax Act provided some special tax advantages for small companies and individuals. This tax incentive, known as the "Percentage Depletion Allowance", is specifically intended to encourage participation in oil and gas drilling. This tax benefit is not available to large oil companies, retail petroleum marketers, or refiners that process more than 50,000 barrels per day. It is also not available for entities owning more than 1,000 barrels of oil (or 6,000,000 cubic feet of gas) average daily production. The "Small Producers Exemption" allows 15% of the Gross Income (not Net Income) from an oil and gas producing property to be tax-free.

To better understand how an oil and gas property might compare to a standard real estate investment, go to our tax calculator:  http://www.1031energy.com/oil-gas-investment-calculator.php  Oil and Gas properties can be beneficial tax-wise, but it is important to have someone with integrity and a knowledge of the oil and gas industry to help you understand how to evaluate such properties.  Dana Veitch is our Oil and Gas specialist.

Dana Veitch is from an oil and gas family dating back to the early 20th century in Oklahoma. Mr. Veitch has been employed in the oil and gas business since 1979, negotiating deals totaling over $1 Billion to date in mergers and acquisitions. This M&A experience came from working for major and independent oil and gas companies including ARCO, Phillips Petroleum, Chevron USA, Petro-Lewis and Anadarko.

Over the years, Mr. Veitch has noticed how Buyers purchased oil and gas properties for top dollar. Knowing there were better deals to be made, Mr. Veitch applies his knowledge and strategies to locate oil and gas acquisitions with a better rate of return. Mr. Veitch carefully evaluates all aspects of the property, the Operator, production history and future life, looking for the best value in the market, ultimately passing the savings to his Clients.

You can contact Dana by email: dana@1031energy.com or by calling 1-888-899-1031.

Comments (1)

Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Hi, Steven

   We invite you back to ActiveRain in the year 2017!

Mar 11, 2017 06:24 PM