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Introduction to Oil and Gas Transactions: Tax Considerations

This course provides an overview and in-depth look of Oil and Gas Federal Income Tax procedures and process. Designed for petroleum new and experienced employees, and service providers involved in Petroleum accounting and industry. Additionally, this course is for those who work in the Oil and Gas Federal tax arena and want to expand their understanding the laws, processes, and procedures used.

Introduction to Oil and Gas Transactions: Tax Considerations

Description

Course Content

This course covers the following topics:

  • Oil and Gas Interest
    • Different Types
    • Pool of Capital Theory (Palmer v. Bender)
    • Economic Interest and Basic Rules in GCM 22730
  • Oil and Gas Leases and Leaseholds
    • Tax Consequences of leasing transactions (Bonus, Delay Rentals, Royalty Advances)
    • Production Payment Consequences
    • Leasehold Costs
  • Federal Oil and Gas Taxes: Finding Oil
    • Pre-drilling Exploration Costs
    • Treatment of Geological and Geophysical Costs
    • Domestic and Foreign Activities
  • Intangible Drilling Costs
    • Deductions – Partnerships
    • Limitations
  • Cost Recovery – Depletion
    • Policy Role
    • Cost and Percentage Depletion
  • Property Dispositions and Recapture
    • Depreciation of Equipment – Tax treatment (Sale vs Exchange, Recapture, Like in Kind Exchanges)
    • Tax Rates
  • Accidental Partnership: Entity Choice and Joint Operations
    • Legal and Tax Differences (C Corp, S Corp, LLC, Partnership)
    • Joint Operating Agreements (JOA)
  • Selected Topics
    • AMT
    • Abandonment
    • Net Income Investment Tax

Learning Objectives

Upon completion of this course, you will be able to:

  1. Explain the federal income tax implications of oil and gas transactions
  2. Illustrate and explain the impact that taxes have on oil and gas operations
  3. Model and calculate taxable income, accounting for available deductions and costs

 

 

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Networking is so important. It will help with your job and career, and you will gain knowledge you can’t get sitting at a desk. The people in COPAS have mentored me, answered questions for me, and genuinely cared about me and my family.

Melissa Gruenewald
Rating: 5

COPAS has great learning opportunities, leadership opportunities, and ways to develop relationships with other accountants and oil and gas professionals. You will work hard when you get involved, but the experiences, people and benefits will be worth it.

Melissa Gruenewald
Rating: 5

For anyone searching for energy knowledge, professional industry contacts, peers with whom to discuss similar dilemmas, and access to energy experts—COPAS is the place to be!

Carolyn Sczepanski
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OUR MISSION

COPAS provides expertise for the oil and gas industry through the development of Model Form Accounting Procedures, publications, and education. We are a forum for the active exchange of ideas which result in innovative business and accounting solutions.

COPAS

P.O. Box 21272
Wichita, KS 67208
Tel: 303-300-1131

Contact Us →

CONNECT WITH US

OUR MISSION

COPAS provides expertise for the oil and gas industry through the development of Model Form Accounting Procedures, publications, and education. We are a forum for the active exchange of ideas which result in innovative business and accounting solutions.

COPAS

P.O. Box 21272
Wichita, KS 67208
Tel: 303-300-1131

Contact Us →

CONNECT WITH US

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