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U.S. Department of Energy
Office of Scientific and Technical Information

Establishing deductions for prepaid intangible drilling and development costs

Journal Article · · Oil Gas Tax Q.; (United States)
OSTI ID:5161677
The deduction of prepaid intangible drilling and development costs (IDC) is an effective tax-planning technique for both oil and gas producers and for outside investors seeking a high proportion of deductibility of their investment dollars in the first year. While the deductibility of prepaid IDC in the appropriate circumstances is well-accepted, the Internal Revenue Service is alert to abuses. The tax planner should carefully follow the guidelines for prepaid IDC deductions.
Research Organization:
Peat, Marwick, Mitchell and Co., Dallas, TX
OSTI ID:
5161677
Journal Information:
Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 28:2; ISSN OGTQD
Country of Publication:
United States
Language:
English