- NY Credits : 10.0
- TX Credits : 10.0
Comprehensive Analysis of Oil and Gas Taxation
This comprehensive course covers just about everything related to the taxation of oil and gas operations. Some of the topics include lease payments, property interests, the concept of unit of property, pre-drilling exploration costs, and intangible drilling and development costs (IDC). The course then delves into the computation of depreciation on lease and well equipment, the computation and limitations of cost and percentage depletion deduction on capitalized leasehold costs, certain proven property transfers, as well as the 65-percent taxable income limitation. This course rounds out the in-depth analysis and presentation with the classification of transactions as a lease, sublease, or sale, proper tax accounting for payments received by a grantor and payments made by a grantee including an examination of all elements involved in the conveyance, the application of the pool of capital doctrine, sharing arrangements, carried interests, and property interests received for the performance of certain services. Finally, this course describes the unitization of property and planning ideas to minimize the current tax liability resulting from the unitization of oil properties. The final exam for this course includes many hands-on, scenario based questions.
This course focuses on the development of in-depth knowledge, skill and application of oil and gas taxation. This course is most appropriate for the professional with mastery of general taxation who may be a seasoned professional within an organization but also may be appropriate for other professionals with specialized knowledge in oil and gas taxation.
Upon successful completion of this course, the user should be able to:
determine the tax consequences related to the acquisition of mineral properties in leasing transactions including lease bonuses, delay rentals, royalties, and abandonments,
distinguish between basic royalty interest and the working or operating interest,
recognize the tax treatment for basic royalty interest, working interests, operating interests, unit of property and pre-drilling exploration costs,
identify intangible drilling and development costs,
calculate depreciation and depletion related to oil and gas,
recognize a sublease and determine the tax treatment of lease payments,
identify the issues related to sales of undeveloped working interests, the treatment for production payments as economic interests, sharing arrangements and carried interest transactions, and
identify other aspects of sharing arrangements including carried interests and unitizations.