Oil and Gas Federal Income Taxation - Part 1

Exam Questions: 120
Course Level: Intermediate
Pages: 422 | Content: 414, Supplemental: 8
NASBA Area of Study: Taxes
Not Acceptable for: N/A
Version: 7680

The taxation of natural resources can be one of the most complicated areas of the U.S. Federal income tax system. This course is written to be an invaluable resource for accounting and tax practitioners working with financial issues related to oil and gas industry law. This first part will cover such topics as purchase agreements, royalties, mineral interests, development costs, depletion deduction, cost depletion, gross income and more. All course material provided. Prerequisites: working knowledge of the oil and gas industry and taxation issues. Course level: Intermediate.

EA Program Approval Number: ZX34G-T-00343-19-S

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Course Information

Table of Contents
  • Introduction to Oil and Gas Taxation
  • Economic Interest
  • Lease and Purchase Agreements
  • Royalty and Overriding Royalty
  • Minimum Royalties
  • Working Interest (or Operating Mineral Interest)
  • Production Payments
  • Net Profits Arrangements
  • Geophysical Expenses
  • Intangible Drilling and Development Costs
  • Sharing Arrangements and Carried Interests
  • Depletion Deduction - General
  • Allowance or Disallowance of Depletion
  • Property for Depletion Purposes
  • Cost Depletion
  • Gross Income from the Property
  • Taxable Income from the Property for Depletion Purposes
  • Limitations on Percentage Depletion
  • To recognize the nuances of mineral rights
  • To identify how economic interest works
  • To identify lessee and lessor rights
  • To recognize how to work with royalty interests
  • To recognize the nuances of minimum royalties
  • To identify the details of working interests and participating interests
  • To recognize how production payments are treated
  • To recognize the nuances of net profits arrangements
  • To identify what is included in ''G and G'' expenditures
  • To identify what qualifies as an intangible drilling cost deduction
  • To recognize the specifics of transferring interests
  • To identify the requirements that must be met for a depletion deduction
  • To identify eligibility for depletion
  • To identify the elements of property for depletion purposes
  • To recognize what is included in the cost depletion computation
  • To define ''gross income from the property''
  • To identify allowable deductions attributed to the mineral property
  • To recognize the nuances of percentage depletion

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