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Tax Smart Real Estate Investors Podcast cover image

297. Drilling Into Profits: A Case Study on Oil & Gas Working Interests with Troy Eckard

Tax Smart Real Estate Investors Podcast

ADVICE

Oil and Gas Investment Structure

  • Invest in oil and gas working interests through a purchase sale agreement to meet IRS at-risk requirements.
  • In the first year, invest personally or through a single-member LLC to maximize tax deductions.
  • In subsequent years, roll the investment into a family limited partnership or LLC for liability protection.
  • Ensure direct ownership of the asset for tax deduction eligibility.
  • Consider a five-year reinvestment plan to accumulate wells that provide long-term income.
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