Oil and Gas Taxation
GTC works with a large network of different oil and gas professionals in the Houston area and frequently works hand in hand with companies in the oil and gas industry on a variety of tax planning matters. We have significant experience with oil and gas tax compliance matters and provide services for taxes related to oil and gas production, including statutory reporting required for such taxes. Please contact us to discuss the tax consulting services that we can provide to you in connection with your potential acquisition or disposition of an interest in oil and gas properties. GTC’s professional tax planning services provide companies with the means to be able to best align their business activities with the best tax result. We regularly assist clients in the oil and gas industry in organizing the configuration of transactions to be as tax-effective as possible, managing our clients’ tax burdens while striving to constantly improve sustainable growth. The types of tax matters on which GTC advises taxpayers and provides tax planning services include each of the following:- Planning exit strategies to minimize tax liability on dispositions of oil and gas properties, including:
- Structuring transfers in oil and gas leases to receive favorable “sale or exchange” tax treatment for an owner who desires to dispose of an operating interest in an oil and gas lease while still retaining a non-operating economic interest in the relevant lease
- Structuring tax deferred “like-kind exchanges” of certain interests in oil and gas properties, including interests held by parties pursuant to a “Joint Operating Agreement”
- Creative tax planning opportunities for dispositions of midstream oil and gas assets in a manner that minimizes the tax consequences on the proposed disposition while still giving the seller maximum flexibility in implementing a seamless transfer of its interest in the relevant oil and gas properties
- Implementing strategies to minimize state severance taxes paid on the extraction of oil and gas
- Tax planning strategies for maximizing deductions related to domestic production activities (Section 199)
- Budgeting and tax planning strategies to maximize deductions for intangible drilling costs and other tax benefits
- Tax basis analysis to assist in maximizing the benefit obtained from depreciation, depletion, and amortization deductions on oil and gas properties
- Specific multi-state tax income tax knowledge, such as withholding and statutory depletion requirements
- Guidance on entity organization, creation, and planning opportunities, with an emphasis in complex entities such as joint ventures, LLCs and partnerships