Oil & Gas Tax Fundamentals: Interests, Costs, and Depletion
Overview
This course will be an overview of:
- Types of O&G interests: Working, royalty, ORRI, NPI, production payments, carried interests, and farmouts
- Cost treatment at each life-cycle stage: G&G, IDCs, tangible equipment, and workovers
- Cost depletion versus percentage depletion: eligibility and calculation
- Dispositions: Sales, Section 1254 recapture, abandonment, Section 1031 exchanges
- Credits: Section 43, 45Q, 45I, and OBBBA changes
Learning Objectives
- Identify the types of mineral interests held in oil and gas properties, recognize which interests qualify as economic interests, and identify who is entitled to claim depletion
- Recognize the federal income tax treatment of costs incurred during exploration, development, and production of oil and gas properties, including geological and geophysical costs, intangible drilling costs, tangible equipment, and workover expenses
- Identify the rules for computing cost depletion and percentage depletion, recognize the tax consequences of disposing of an oil and gas property including Section 1254 recapture, and identify the credits available to oil and gas producers under Sections 43, 45Q, and 45I
Details
- Field of Study
- Taxes
- Credits
- 1 Credit
- Provider
- Becker Professional Education IRS Approved Program
- Knowledge Level
- Basic
- Advanced Preparation
None
- Course ID
- 46444/53892
- Publication Date
- 09/30/2026
- Planned Expiration
- 09/30/2027
- Prerequisites
None
Instructor
Timothy F. Gearty CPA, MBA, JD, CGMA
Tim Gearty is the National Director and Editor-in-Chief for the world’s largest CPA training program, Becker CPA Review. In addition to his editorial leadership, Tim is also Becker's National Lead Instructor, whose taped lectures are seen in over 325 locations throughout the world. Tim is a nationally recognized expert and speaker on a variety of accounting and tax topics, and has appeared as keynote speaker for several Fortune 100 companies as well as many national associations. He has frequently been called upon over the past twenty years to present accounting and tax topics to large groups, organizations, and corporations, accounting firms and in legal proceedings. Tim is a partner in Gearty & McIntyre, LLP, CPA, a firm which has developed a reputation as a specialist in business advisory services, litigation support and forensic accounting. He is a member of the American Institute of Certified Public Accountants and the New Jersey Society of Public Accountants as well as a trustee of that organization. He holds a BS in Accounting from Fairleigh Dickinson University, and both a MBA in Finance and Law Degree (JD) from Seton Hall University. Tim is a member of the New Jersey and American Bar Associations.
Accreditations
- 1 year course access
- NASBA-approved content
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