EV Takes 4 Days to Charge

[toolbelt]

How can anyone know what you're talking about when you say the below...

"However, the 80% - 100% deduction for investments into exploration MLPs is specific to only the oil and gas industry."

...and the above "This is not specific to MLPs."

Which is it? I explained how what you said is NOT the case for MLPs, are you at least conceding that now?


The words "exploring," "explore," "exploratory," etc. don't appear anywhere in that article. Be specific; WHAT deduction are you talking about?



So, now you ARE talking about MLPs? If so, go back to what I said before; distributions to unit owners of MLPs are largely (80-90%) treated as return of capital, which is subtracted from the original cost basis. Once the cost basis hits 0, they are taxed as capital gains.

To call this a "subsidy" to the oil industry is...ridiculous.

Are you saying Big Oil receives nothing from the government in the form of incentives, tax write-offs, subsidies and environmental rule-making????

 

[scagnt83]

The words "exploring," "explore," "exploratory," etc. don't appear anywhere in that article. Be specific; WHAT deduction are you talking about?

I explained that term meant oil & gas wells. Exploration company is an O&G industry term for companies who search out new wells.

Literally the first 4 lines of the article explained the up to 100% deductions for oil & gas drillers/wells.

• Several major tax benefits are available for oil and gas companies and investors that are found nowhere else in the tax code.
• Tangible costs, which pertain to the actual direct cost of the drilling equipment are 100% deductible but must be depreciated over seven years.
• Intangible drilling costs generally constitute 65-80% of the total cost of drilling a well and are100% deductible in the year incurred.
• Lease operating costs and all administrative, legal, and accounting expenses can also be deducted over the life of the lease.

 

[scagnt83]

How can anyone know what you're talking about when you say the below...

"However, the 80% - 100% deduction for investments into exploration MLPs is specific to only the oil and gas industry."

...and the above "This is not specific to MLPs."

Which is it? I explained how what you said is NOT the case for MLPs, are you at least conceding that now?
......

So, now you ARE talking about MLPs? If so, go back to what I said before; distributions to unit owners of MLPs are largely (80-90%) treated as return of capital, which is subtracted from the original cost basis. Once the cost basis hits 0, they are taxed as capital gains.

To call this a "subsidy" to the oil industry is...ridiculous.

I explained that most oil & gas drillers are structured as a MLP. But its not limited to just MLPs. The tax deductions are available to investors in any other type of business entity.

This is an oil and gas deduction. Not MLP. Very clear from the article if you read the first 4 lines.

 

[scagnt83]

BTW @whatyouwantfinally , that means that YOU personally, could invest in an oil and gas company (directly invest not buy stock) and deduct anywhere from 80%-100% of that investment from your taxable income for the year. So if you made $200k, invest $100k, you only get taxed on $100k that year. You must qualify to be an accredited investor, but assuming you do, you can do it. Should anyone be able to do it is another question.

 

[whatyouwantfinally]

I explained that term meant oil & gas wells. Exploration company is an O&G industry term for companies who search out new wells.

Literally the first 4 lines of the article explained the up to 100% deductions for oil & gas drillers/wells.

• Several major tax benefits are available for oil and gas companies and investors that are found nowhere else in the tax code.
• Tangible costs, which pertain to the actual direct cost of the drilling equipment are 100% deductible but must be depreciated over seven years.
• Intangible drilling costs generally constitute 65-80% of the total cost of drilling a well and are100% deductible in the year incurred.
• Lease operating costs and all administrative, legal, and accounting expenses can also be deducted over the life of the lease.

What business isn't allowed to deduct operating expenses? Seriously?

The only "exception" there is being allowed to deduct intangible costs in year 1 as opposed to depreciating them year by year. They included that in the tax code because they recognized drilling for oil doesn't always lead to revenue.

How is this a "subsidy?"

 

[whatyouwantfinally]

BTW @whatyouwantfinally , that means that YOU personally, could invest in an oil and gas company (directly invest not buy stock) and deduct anywhere from 80%-100% of that investment from your taxable income for the year. So if you made $200k, invest $100k, you only get taxed on $100k that year. You must qualify to be an accredited investor, but assuming you do, you can do it. Should anyone be able to do it is another question.

This is why I asked you to clarify; your statement above reads like you believe investments in oil/gas are tax deductible in the way charitable donations are. This is wrong.

If you are partner to a venture to dig for oil, for example, you can deduct 100% of the "intangible drilling costs" of said venture in year 1. Again, EVERY business deducts expenses. This isn't a handout. This was the writers of the tax code (a very long time ago) recognizing that having these expenses deducted as oil came out of the ground didn't make sense since that may never happen.

You've gone from saying the government directly hands them billions of dollars to complaining the tax code treats oil exploration/drilling reasonably.

 

[whatyouwantfinally]

Are you saying Big Oil receives nothing from the government in the form of incentives, tax write-offs, subsidies and environmental rule-making????

No, I'm not saying everything that could possibly be bad for oil companies has happened.

I am saying the government doesn't hand them money and, in terms of rule-making and incentives, does more harm to them than good.

All this talk about investment incentives, how has that investment been going the last couple years? It has been in the toilet, almost entirely due to the "incentives" the government has created AGAINST investment in oil.

 

[WinoBlues]

Yeah buts aside. Should, Would, Coulda aside.

The United States is not anywhere near ready for all EV today. Nowhere near ready for 50% EV in 10 years. Even in the fictional world of everyone's 3 family cars charging all night every night in their three car garage.

California dictates 35% New cars sold are EV 3 years from now. Graduating up to 100% in 12 years.

Cart Horse

 

[scagnt83]

What business isn't allowed to deduct operating expenses? Seriously?

The only "exception" there is being allowed to deduct intangible costs in year 1 as opposed to depreciating them year by year. They included that in the tax code because they recognized drilling for oil doesn't always lead to revenue.

How is this a "subsidy?"

What you just said there, is that oil companies drilling for oil have a special tax break that others do not have....

You asked for examples of soft subsidies... you drilled down on this one.... you yourself are saying its a tax break just for oil companies.

That is the very definition of an indirect subsidy.... a tax break not available to other companies.

 

[scagnt83]

This is why I asked you to clarify; your statement above reads like you believe investments in oil/gas are tax deductible in the way charitable donations are. This is wrong.

If you are partner to a venture to dig for oil, for example, you can deduct 100% of the "intangible drilling costs" of said venture in year 1. Again, EVERY business deducts expenses. This isn't a handout. This was the writers of the tax code (a very long time ago) recognizing that having these expenses deducted as oil came out of the ground didn't make sense since that may never happen.

You've gone from saying the government directly hands them billions of dollars to complaining the tax code treats oil exploration/drilling reasonably.

Investments into Oil & Gas exploration companies are up to 90% tax deductible to the investor, in the year of the investment.

It must be a direct investment in a non publicly traded company. And the investment must be used to fund the purchase of machinery.

Its a very popular (and risky) investment for wealthy accredited investors looking for big tax deductions.