{"@context":"https://schema.org","@type":"FAQPage","mainEntity":[{"@type":"Question","name":"What's the difference between cost depletion and percentage depletion?","acceptedAnswer":{"@type":"Answer","text":"

Cost depletion is based on your investment in a mineral property, while percentage depletion is based on a fixed percentage of gross income from production. Depending on your situation, one may provide greater tax savings - and we help calculate and apply the most advantageous option.\n
\nLearn more through our Tax Planning services for mineral and royalty owners.

"}},{"@type":"Question","name":"Can I deduct intangible drilling costs (IDCs)?","acceptedAnswer":{"@type":"Answer","text":"

Yes - if you're an operator or working interest owner, you may be able to deduct a substantial portion of your drilling costs as IDCs, either expensed immediately or amortized. We help classify expenses correctly and maximize allowable deductions.\n
\nThese deductions are coordinated through our Tax Compliance service.

"}},{"@type":"Question","name":"Do I need to issue 1099s for royalty payments or working interest partners?","acceptedAnswer":{"@type":"Answer","text":"

Yes. Most payments to non-employees or partners in oil and gas ventures require 1099-MISC or 1099-NEC filings. We track payments and ensure timely, accurate issuance of all required forms.\n
\nExplore our Policies & Procedures services for help managing vendor and partner payments.

"}},{"@type":"Question","name":"What tax filings do oil and gas businesses need in Texas?","acceptedAnswer":{"@type":"Answer","text":"

In addition to federal filings, you may be required to file Texas Franchise Tax returns and severance tax reports depending on your role and production volume. We help ensure your filings are timely and penalty-free.\n
\nVisit our State Franchise Income & Tax Return page for compliance support.

"}},{"@type":"Question","name":"Can you help manage reporting for inherited mineral rights or energy trusts?","acceptedAnswer":{"@type":"Answer","text":"

Absolutely. We assist with valuation, basis tracking, depletion schedules, and tax filings for mineral rights passed down through estates or family trusts. We also help manage energy trusts to ensure proper distributions and compliance.\n
\nLearn more through our Succession Planning & Wealth Transfer services.

"}}]}