Tax Benefits Of Investing In Oil And Gas | 2024
Video Overview & Insights
Buy my book, The Art Of Legal Tax Avoidance ▶ https://theartoflegaltaxavoidance.com/?utm_source=youtube&utm_campaign=book_launch
thisAI stuff is ridiculous
▼ Many people want to invest in assets with great tax advantages. However, a lot of investors struggle to find the best tax-deductible investments. Certain oil and gas investments can provide outstanding tax benefits. Savvy investors who put their money into specific oil and gas investments can enjoy an array of tax deductions.
In this video, tax expert Karlton Dennis explains the key tax benefits of oil and gas investing. These investments include massive deductions for drilling costs, tax exemptions for percentages of cash flow, the ability to offset W-2 and 1099 income, and more. The tax benefits vary from investment to investment.
i would love to buy a stock, i just dont know how to do it, i am a senior....but have always wanted to invest
In addition to explaining some of the best tax benefits of oil and gas investing, Karlton also breaks down four of the most common ways to invest in the oil and gas sector. These options include working interests, royalty interests, and more. Each of these options has its pros and cons. Karlton explains them all.
Timecodes
Is buying chevron stock investing in oil and gas
0:00 Video Overview
0:19 Oil & Gas Wells Investments Broken Down
How do you sift through the scammers and real ones?
1:37 Tangible & Intangible Drilling Costs
3:49 Small Producer Depletion Allowance
Karlton please tell me with who do you invest in oil? What investment group?
4:23 How Oil & Gas Investments Work
7:27 Royalty Interest
Hi I have a land and need a developer to go on a contract with to develop the land.. or build a gas station in Ghana . I'm ready for whatever necessary steps and verification needed
8:30 Oil & Gas Stocks
Taking the Next Step:
This is great information. Does it make sense to invest in oil and gas royalties via a self-directed IRA?
Download the Short-Term Rental Rule E-Book! ▶ https://ebook.taxalchemy.com?utm_source=youtube
Download the Short-Term Rental Rule E-Book! ▶ https://ebook.taxalchemy.com/?utm_source=youtube
Tell the difference between deductions and credit .. deduction is not the same as credit
Book a Professional Tax Assessment Call ▶ https://www.taxalchemy.com/consultation-survey?utm_source=youtube
Cost Segregation Tax Savings Calculator ▶ https://taxalchemy.com/cost-segregation-calculator/
Karlton, I heard using an irrevocable trust for investing in a working interest of Oil/Gas/Minerals is not recommended. I do have such a trust in which I will gift a large sum of crypto. I am assuming the trust will have a big tax bill and I want to offset those those taxes with a Direct Participation Program with a working interest. Is this possible?
Get Help Setting up Your LLC, Now ▶ https://shareasale.com/r.cfm?b=617326&u=2911896&m=53954&urllink=&afftrack=
*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.
Invested in a new oil rig that is about to start drilling. My CPA says we can't do any tax write-off cause it's an investment gamble. Nothing she says makes sense when this is telling me otherwise. Is there an IRS document that I can show her to prove otherwise?
#OilandGas #TaxBenefits #EnergySector
if the investment doesn't provide return.... you lose $$$. much more than the tax deduction... FUndamentally, a lot of what this guy says is "use LOSS to offset income" ... You do the math, paying tax in full on all investments that generated profits is BETTER off than "generating losses" to offset the taxable income...
More User Perspectives
the key is oil -gas investments "CAN" generate porofits.... they may or may not....
@moon3173With working interest, the royalty (after 15% deduction) the amount you get is consider active income. which would make my income tax look worse. what do people do that situation? S corp in self employment? Pleas give me some ideas to think about? Thanks.
@lc6521If you’re looking to get great tax benefits, consider investing in energy. I recommend using FieldVest to find the best projects that can help you maximize those perks. It’s an easy way to connect with top opportunities and save on taxes.
@SharifMatarOk, so whats the best way for a non accredited investor to invest in this sector and get cash flow and tax benifits? (not the mutual fund).
@Heyits_gusWhat is an example of a working interest investment that someone could make today? Do we need to be accredited investors ?
@matthewellis3004What stocks or index fund can we buy to invest in "oil drilling" and/ or energy to be able to use these tax breaks?
And how do we as average middle class income earners can invest in this oil wells if we do not qualify as an "accredited investor?"
People don’t even know this
@dflow7878Thank you for this synopsis. I just started learning about this industry in the last couple of weeks. This, by far, has been the clearest explanation of the various aspects of oil and gas investing.
@rhombus20Fantastic channel! We just discovered you and are binging on your channel. Excellent job on your videos. You are a standout!
@jamiesaariIn your breakdown of options for investing, I didn't see any reference to bonds. Thoughts?
@howiedawson7007⚜️I'm in Texas..for 5 1/2 years now. This is a real thing! I did sales in this business- to investors..for a while when I 1st got here from CA.
A lot of peoples' houses are sitting on oil & they have Oil Rights & receive payment every month!
My ex works for an oil company. Many guys in this part of Texas work in the oil business here in the Permian Basin & they make amazing income! Long hours but everyone's well over 100k. No degree... just hard work, long hours... & the industry doesn't stop, doesn't close for the weekend, it's moving every single day, 24-7!
If you can invest it can be a great investment just be careful!
Great video!🎉
Hi Karlton! I took your Tax-Free Wealth Challenge recently and loved all of the new things I was able to learn. I was contemplating between doing the Inner Circle, in comparison to hiring one of the Tax Professionals on your team. I already had a briefing with a Tax Professional with UncleKam and was hoping I may be able to speak with someone to see which route to go from here. Thank you so much in advance and I truly appreciate all of your material!
@TinaBurrows-bg3bmKarlton,I have been watching your videos for a while,very informative.i would like to know what woul you do if you won one of hgtv's dream homes would you take the house in lieu of the cash lump sum
@ashantecook4376In My Trump Voice "DRILL BABY DRILL!" It literally is that simple.
@JrTruther86Karlton, I’m thinking about withdrawing funds out of my 401k, which would be taxable. And invest that into O&G working interest. 401k funds are considered ordinary income. Would this investment be able to deduct some, if not most, of those 401k funds? Do you think this strategy would work? Thank you.
@thanhle7026So if this is active income, how can you document expenses if you don't materially participate in it?
@scnager1Fascinating. My parents invested in some Kentucky oil wells back in the day, and the kids are getting payments up to today. However I am sure they didn't know the tax bit. :( I think I will look further into this sector - and I would definitely be getting some help before I invest. Maybe from you. :) Oh and I have a new goal - to be an accredited investor.
@rosejones2932Aren’t losses on O&G considered passive losses? If so, then how can I use a passive loss to offset “earned income” on a W2?
@avikohen851Thank you sir for the video,it has tauhgt me alot.
@besajefamilyBeen knowing, but don’t know if it frees to securities or is there another way at an affordable level and then a higher level?
Speak the gospel to me Karl 🙌🏼
Thanks for the update are you aware of any safe funds there are lot of scam companies
@bckarWould you be able to clarify - if someone has a NY LLC already operates- if they start a Wyoming holding company - would they only be taxed according to Wyoming tax law ?
@hamidujalloh6518I learned something new today.
@IssacEinsteinAmazing content
@bernardbell8577Interesting...TY
@mikehess4494Been looking to buy a well, do you know the best place to look?
@FRDOMFGTHRinteresting !
Karlton consistently providing us with GEMS!