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DW'S APPROACH PUTS QUALIFIED
INVESTORS INTERESTS FIRST
OPEN AND TRANSPARENT
ANALYTICAL AND PROCESS ORIENTED
RELATIONSHIP FOCUSED
RESULTS DRIVEN
DW partnerships are structured to maximize the potential benefits of direct participation in domestic oil and gas exploration and production. DW takes pride in its partner first attitude and has built its reputation by approaching the business with the following values:
TAX ADVANTAGES OF OIL AND GAS
HOW IT WORKS
ACTIVE VS PASSIVE INCOME
The tax code specifies that a working interest (as opposed to a royalty interest) in an oil and gas well is not considered to be a passive activity. This means that all net losses are active income incurred in conjunction with well-head production and can be offset against other forms of income such as wages, interest and capital gains.
DEPLETION ALLOWANCE
The IRS also gives a 15% depletion allowance against production revenue to allow for the drop in oil and gas reserves in a well. The 1990 Tax Act allows certain entities to exempt 15% of their gross income from federal taxes to help support smaller oil companies and direct investors.
ALTERNATIVE MINIMUM TAX
The Energy Policy Act of 1992 repealed both ATM preference items, percentage depletion and IDC, for independent producers and royalty owners, not integrated oil companies. All excess intangible drilling costs have been specifically exempted as a "preference item" on the alternative minimum tax (AMT) return. The AMT was established to ensure that taxpayers paid a minimum or their "fair share" of taxes by recalculating the income tax owed, adding back specific preferential tax deductions or items.
Several major tax benefits are available for oil and gas companies and investors that are found nowhere else in the tax code. Tax breaks for investors provide financial benefits for oil and gas investing, regardless of the drilling outcome. Right now, investing in natural gas and oil can be especially lucrative.
WHY ARE THERE TAX BREAKS FOR INVESTORS IN OIL AND GAS?
The publicly-available information provided in and on this website is for informational purposes only and provides factual business information about DW Energy Group, LLC. This publicly-available information provided in and on this website is not intended to and does not constitute an offer to sell or the solicitation of an offer to purchase to any person in any jurisdiction. The contents of this website shall not be construed as legal, business or tax advice.
Intangible Drilling Costs (IDCs) and other first year expenses could comprise over 80% of a qualified investor's investment. For qualified investors, these expenses may be fully tax deductible in the year incurred.
Up to 15% of a wells gross annual production may be tax free in perpetuity.
Investing in domestic oil and gas exploration and production can be a financially lucrative experience for qualified individuals and entities looking to diversify outside of conventional or low yield investment environments