Intangible Drilling Costs

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Expenses a company has when it drills for oil or natural gas. Intangible drilling costs are sometimes convenient for a company's tax purposes because it can deduct intangible drilling costs in one year when the company perhaps found little or no oil from profits made in a different year when the company does find oil.

intangible drilling costs

Expenses incurred while exploring for gas, geothermal, or oil reserves. These items may be expensed in the year incurred, or they may be capitalized and deducted throughout a period of years. Intangible drilling costs are an effective means of reducing taxes because they can be used to offset income in a single year even though the costs were incurred in order to produce or develop a capital asset (energy reserves) that will in turn generate income for many years. Costs for fuel, preparation of a site, and wages are examples of intangible drilling costs.

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amortization IDC			The new budget being proposed by the Obama administration is proposing a repeal of what are called ‘intangible drilling costs’ and the expensing of intangible drilling costs (IDCs). Natural gas is a victim of its own success, says Michael Hall: Part 2 by The Energy Report / Stockhouse In late February, his administration proposed a new 2010 budget that would eliminate tax breaks on intangible drilling costs such as fuel, labour and repair costs, which help attract capital to high-risk oil and gas drilling. Brown On The Nuclear Option by APS Review Oil Market Trends While less likely, a lessor may also have intangible drilling costs, tangible asset costs, and other operating costs. Tax consequences of the rush for natural gas in the Appalachians by Russo, Charles J.; Staley, A. Blair / The Tax Adviser			Insurance Claim Insurance Company Insurance Coverage Insurance Dividend Insurance Dividends Insurance Fraud Prevention Act Insurance Guaranty Act Insurance Policy Insurance Premium Insurance Premium Tax Insurance principle Insurance Risk Insurance Score Insurance Settlement Insurance Trust Insured Insured Account Insured Asset Insured Bond Insured Event Insured Loan Insured plans Insured Trade Acceptance Intangibility Intangible Asset Intangible Drilling Costs Intangible Personal Property intangible property Intangible Tax Intangible Value Integer Programming Integralizado Integrated Financial Market integrated market making Integrated Pension Plan Integrazione a inizio Integrazione a termine Integrazione orizzontale Integrazione verticale Intellectual Property Rights Intellidex intelligent building Intentieverklaring intentional fraud inter vivos branch inter vivos trust Inter-African Coffee Organization Inter-American Commercial Arbitration Commission Inter-American Development Bank Inter-American Investment Corporation Inter-Arab Investment and Export Guarantee Corporation			intakes intakes intakes intakes intaking Intal Intal Intal Intalox Metal Tower Packing Intaminated INTAN Intan Andalas Wood Industry intangibility intangibility intangibility intangible intangible intangible intangible asset intangible asset intangible asset intangible asset Intangible assets Intangible assets Intangible assets Intangible assets Intangible Cultural Heritage Intangible Drilling and Development Cost Intangible Drilling and Development Costs Intangible Drilling Cost Intangible Drilling Costs Intangible Personal Property Intangible Personal Property Tax Intangible property Intangible property intangible tax Intangible Taxes Intangible Value Intangible Values intangibleness intangibleness Intangibles Intangibles Intangibles intangibly intangibly Intangle INTAP Intar Intarnut Intarnut Intarnut intarsia intarsia intarsia intarsia Intarsio Intarsio INTAS Intas Biopharmaceutical Limited INTASC

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