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U.S. Department of Energy
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Federal tax considerations in structuring oil and gas investments for institutional investors

Journal Article · · Oil Gas Tax Q.; (United States)
OSTI ID:5849448

An analysis of the federal income tax considerations involved in structuring oil and gas investments for institutional investors finds that acquisitions of working interests are best suited for taxable institutions since they can use the special deductions provided by the Internal Revenue Code for intangible drilling and developments costs and depletion. If the institution is not to participate in the management of the drilling program and desires to limit its exposure to liability, the most suitable investment vehicle is a limited partnership. Investments in royalties or net profits interests are suitable for both taxable and tax-exempt institutions.

Research Organization:
Brown, Wood, Ivey, Mitchell and Petty, New York, NY
OSTI ID:
5849448
Journal Information:
Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 31:3; ISSN OGTQD
Country of Publication:
United States
Language:
English