Whether you are a citizen of the United States or a non-resident, you are supposed to pay four different sorts of taxes in the United States. At the close of the tax year one needs to file a tax refund to the Internal Revenue Service or IRS. In the US, on the 31st of December the tax year ends and by the 15th April of the year the tax refunds of IRS should be filed to prevent consequences. This is why people look for tax benefit option as it intends to reduce a tax payer’s burden while supporting some types of commercial activity.
JBH Consulting Group is a top class oil and gas company located in Kansas City, Missouri, United States which offers great tax benefits to the investors. Oil and gas investments provide many exciting tax benefits and deductions that other types of investments do not give. Several tax benefits are offered by the drilling projects and these profits significantly improve the finances.
- Intangible Drilling Costs or IDC: This includes cost such as chemicals, labor, supplies, grease and mud. All these can include sixty to eighty percent of the expenditure and are hundred percent liable to deduction. This deduction is obtainable irrespective of whether the well is productive or not.
- Intangible Completion Costs (ICC): These costs are also completely liable to deduction in the year incurred.
- Tangible Drilling Costs (TDC): These are the prices of tools related to oil and gas drilling such as pump jacks, wellheads, and casing. These costs are also completely liable to tax deduction.
- Depletion Allowance: For oil and gas depletion the Internal Revenue Code offers a subtraction from gross incomes. Cost depletion and percentage depletion are two types of depletion. Cost depletion is a more compound calculation but also permits for a deduction from gross incomes from oil and gas manufacture. Percentage depletion is more usually used in the oil and gas industry and allows for a fifteen percent deduction from gross incomes. This provision is offered for investors who own not more than one thousand barrels of oil per day or not more than six million cubic feet of gas per day.
JBH Consulting Group says that in order to find out how these tax benefits may impact the individual tax position the investor is encouraged to consult with the personal tax advisor.
Direct oil and gas investments can offer certain outstanding income and tax planning chances for accredited investors. With the Government of the United States offering hike on tax dividends, and the stock market, it may be an outright ideal time to branch out out of some of the equity positions into oil and gas direct investments.
JBH Consulting Group is headed by Brian Hudnall who has several years of experience in the field and ensures that the entire team at JBH works cooperatively with the geologists, engineers and oil and gas operators to provide best tax advantage to the investors.