Tax Advantages
Under the current law, for example, drilling expenses and production income currently both offer excellent tax advantages with most partners getting to write off 100% against their ordinary income.
Federal Income Tax Deductions Available:
Intangible Drilling Costs (IDC) – Immediate tax deduction in the year costs are incurred (100% for new drilling ventures). See IRS publication 535, page
Tangible Drilling Costs (TDC) – 100% Tax deductible in year costs are incurred and assets placed in service due to Bonus Depreciation.
Percentage Depletion – Tax deductible for percentage depletion (15% of gross income is tax deductible, even when in excess of cost depletion, subject to certain limitations).
Lease Operating Costs – 100% Tax
Exemption from passive loss rules – The working interest owned by the Joint Venture qualifies for the exemption from the Passive activity rules if the partner’s ownership in the Joint Venture meets the exception guidelines.
*TAX ADVANTAGES VARY DEPENDING ON YOUR PERSONAL TAX SITUATION. PLEASE CONSULT YOUR TAX ADVISOR. NOTE THAT CURRENT LAW IS SUBJECT TO CHANGE. CERTAIN CURRENT RULES MAY LIMIT AN INVESTOR’S ABILITY TO TAKE TAX DEDUCTIONS FROM THE VENTURE.
THIS LETTER IS NOT INTENDED NOR WRITTEN TO BE USED, AND CANNOT BE USED, BY ANY PERSON FOR THE PURPOSE OF AVOIDING TAX PENALTIES THAT MAY BE IMPOSED ON SUCH PERSON. THIS LETTER WAS
PREPARED TO provide information to allow participants to make informed investment decisions. THE TAXPAYER
SHOULD SEEK ADVICE BASED ON THE TAXPAYER’S PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.
POTENTIAL INVESTORS MUST READ THE CONFIDENTIAL MEMORANDUM RELATING TO THIS INVESTMENT IN ORDER TO UNDERSTAND THE RISKS INVOLVED. TAX RISKS ASSOCIATED WITH AN INVESTMENT IN THE
VENTURE Are substantial and are more fully DESCRIBED IN THE CONFIDENTIAL INFORMATION MEMORANDUM UNDER “RISK FACTORS – RISKS RELATED TO TAX MATTERS” AND “TAX ASPECTS.
Current Opportunities
If you are interested in receiving information on partnership opportunities currently available with Swarm Resources, please click the “Learn More” button.
Tax Advantages
There are a number of significant tax advantages available to qualified investors who participate in Joint Venture Partnerships.
Partnering With Us
Due to the nature of risk of Oil & Gas Partnerships we focus our efforts on High income and High Net worth individuals, corporations, and family offices. Qualified accredited investors only may participate in our Joint Ventures.
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Fill out our brief partner form to schedule your one on one meeting today!