The Tax Reform Act of 1986 has created numerous changes in the tax laws which affect oil and gas investors, producers, royalty owners and the oil and gas industry in general.

Tax changes have been implemented with respect to intangible drilling costs, prepayment of intangible drilling costs, depletion, depreciation of oil, and gas equipment, the investment tax credit and the alternative minimum tax.

Keywords:
tax year, depletion, percentage depletion, society of petroleum engineers, deduction, passive activity, long-term capital gain, capital gain, oil and gas, intangible drilling cost
Subjects:
Asset and Portfolio Management
Copyright 1987, Society of Petroleum Engineers
You can access this article if you purchase or spend a download.