Drilling funds focus on new wells, providing significant tax benefits to investors in their year of investment. For high income earners, self-employed individuals, or those with substantial taxable events, oil & gas drilling funds may help reduce tax liability while generating potential long-term income.

Section 263(c) of the IRS tax code allows taxpayers to fully deduct intangible drilling costs (IDCs) as expenses. IDCs are normally paid in the first year and allocated first to General Partner Investors, resulting in a significant ordinary income tax write-off.

Upfront Tax Benefits

Fully deduct intangible drilling costs up to the projects IDC amount.

Ongoing Tax Advantages

A portion of each partnership's potential distributions will be tax advantaged due to Depletion, Depreciation, and Qualified Business Income Deductions.