Oil · WTI
$96.88
per barrel, week ending Oct 9, 2026
For accredited investors877.427.4707
Year-end 2026 edition
The oil & gas tax guide.
What direct ownership of oil and gas wells can mean for your taxes, explained before the 2026 tax year closes.
Investments in domestic drilling may qualify for up to a 100% write-off in year one. Tax benefits depend on individual circumstances.
Real wells, real productionEstablished operatorsSouthlake, Texas
The Oil & Gas Tax GuideBASIN VENTURES
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The Oil & Gas Tax Guide
2026 Year-End Edition · 16 pages
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Download the guide ↓Investments in domestic drilling may qualify for up to a 100% write-off in year one. Tax benefits depend on individual circumstances.
Source: U.S. Energy Information Administration. Updated weekly.Oil & Gas, Explained →
The basics
Why the tax code treats wells differently.
Congress has long used the tax code to encourage domestic drilling. Most of what it costs to drill a well, the labor, chemicals and services that leave nothing behind, can generally be deducted in the year it is spent. The guide walks through each piece and the rules that decide whether it applies to you.
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
2026 Year-End Edition
Inside the guide
Plain English.
No sales pitch.
- 01Working interests and the passive-loss rulesp. 3
- 02Intangible drilling costs, in plain Englishp. 5
- 03Tangible costs and how they are depreciatedp. 7
- 04The 15% depletion allowancep. 8
- 05What has to happen before December 31p. 11
- 06The risks, plainlyp. 13
- 07Questions to bring to your CPAp. 14
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
Year-end oil and gas tax questions.
What oil and gas tax deductions can apply before year end?
Three do most of the work: intangible drilling costs (IDCs), depreciation on tangible equipment, and the 15% depletion allowance on production income. Which ones apply in a given year depends on when drilling costs are paid and incurred, and on your own tax situation.
How does the intangible drilling costs deduction work?
Intangible drilling costs are the labor, chemicals, mud and services that leave nothing behind once a well is drilled. An investor in a working interest can generally deduct their share in the year the costs are incurred, rather than over the life of the well. This IDC tax deduction is usually the largest part of the first-year deduction.
Is an oil and gas tax write off really up to 100%?
Investments in domestic drilling may qualify for up to a 100% write-off in year one, largely through IDCs. Not every dollar qualifies: tangible equipment is depreciated over several years instead. How much applies to you depends on individual circumstances, so confirm it with your CPA.
What has to happen before December 31?
In general the deduction follows when drilling costs are paid and incurred. Prepaid drilling costs can still count for the year when drilling begins within 90 days after year end, under rules your CPA can confirm for your situation. The guide lists the dates and questions to bring to that conversation.
Can a working interest offset my wages or business income?
A working interest held directly, without limited liability, is treated as an active investment under an exception to the passive-loss rules, so its deductions can generally offset ordinary income. That exception is what makes the oil and gas investment tax deduction useful to many high earners. Your CPA can tell you how it applies to you.
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.
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