Oil · WTI
$96.88
per barrel, week ending Oct 9, 2026
For accredited investors877.427.4707
Oil & gas taxes
How oil & gas is taxed.
Direct ownership of a well is taxed differently from almost anything else you can own. Here is how, and who it applies to.
May qualify for up to a 100% tax write-off. Tax benefits depend on individual circumstances.
Real wells, real productionEstablished operatorsSouthlake, Texas
The Oil & Gas Tax GuideBASIN VENTURES
Free guide
The Oil & Gas Tax Guide
For accredited investors · 32 pages
Free. No obligation. We never sell your information.
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Download the guide ↓May qualify for up to a 100% tax write-off. Tax benefits depend on individual circumstances.
Source: U.S. Energy Information Administration. Updated weekly.Oil & Gas, Explained →
The basics
Three rules do most of the work.
Intangible drilling costs, depreciation on equipment and the depletion allowance on production. The guide explains each one with a worked example, without the jargon.
IDCIntangible drilling costs, generally deductible in the year incurred
TDCTangible equipment, depreciated over time
15%The statutory depletion allowance on production income
How a well works
The Oil & Gas Tax Guide
For accredited investors
Inside the guide
Plain English.
No sales pitch.
- 01Working interests and the passive-loss rulesp. 4
- 02Intangible drilling costs, in plain Englishp. 6
- 03Tangible costs and how they are depreciatedp. 8
- 04The 15% depletion allowancep. 9
- 05What has to happen before December 31p. 12
- 06Questions to bring to your CPAp. 13
What happens next
A conversation first. A decision on your terms.
1
Read the guide
Take your time with it. It covers how ownership works, what it costs and the risks, plainly.
2
Talk with our team
If it fits what you are looking for, a member of our investor relations team will answer your questions. No pressure, no script.
3
Review the documents
Every offering is made through a confidential private placement memorandum, and accreditation is verified before anyone invests.
Fair questions
Oil and gas tax questions.
What are the tax benefits of oil and gas investing?
Direct ownership of a well is taxed differently from stocks or bonds. The main rules are the deduction for intangible drilling costs, depreciation on tangible equipment, and the 15% depletion allowance on production income. Together they are why oil and gas investing is often discussed in tax planning.
Can I invest in an oil well to reduce my taxes?
Many investors consider oil and gas partly for its tax treatment, and direct investments in domestic drilling may qualify for up to a 100% write-off in year one. But a well is worth owning only if it makes sense as an investment on its own. Tax benefits depend on individual circumstances; your CPA can tell you what applies.
Do oil drilling investment tax deductions offset ordinary income?
Often, yes. A working interest held directly, without limited liability, falls under an exception to the passive-loss rules, so its deductions can generally offset wages and business income rather than only passive income. Confirm how it applies to your situation with your tax adviser.
What is the depletion allowance?
It recognizes that a well produces a finite resource. For most small producers and their investors, 15% of gross production income can be deducted each year under percentage depletion, subject to limits set by the tax code.
Who is this for?
Accredited investors, as the SEC defines them. Asking for the guide does not verify or decide your eligibility, and it does not commit you to anything.
Will I have to operate a well?
No. In a non-operated working interest, an established operator drills and runs the well. Basin selects the wells, negotiates the interest and handles accounting and reporting for investors.
What are the risks?
Real ones. Oil and gas prices move, wells can produce less than expected, drilling can fail, and these investments are illiquid. You can lose some or all of what you invest. The offering documents describe every risk in detail, and you should read them in full.
How do the tax rules apply to me?
It depends on your situation. Direct oil and gas investments may qualify for significant deductions, but whether and how they apply is a question for your own CPA or tax adviser. The guide gives you the right questions to ask.
Who is Basin Ventures?
A Southlake, Texas company that puts private investors into domestic oil and gas wells through working interest funds. Learn more at basinventures.com.
Free guide
Get the Oil & Gas Tax Guide.
Free. No obligation. Or call 877.427.4707.