...tract or parcel of land. The option applies only to certain expenditures made by an operator incident to and necessary for the drilling and preparation of wells for the production of oil and gas. If an investor acquires by payment of an agreed amount both a working interest in an oil lease...

...defined for tax purposes as any cost incurred which in itself has no salvage value and which is incident to and necessary for the drilling and preparation of wells for the production of oil and gas. For income tax purposes, taxpayers who incur intangible drilling and development costs on successful...

...intangible drilling costs pertaining to SEG 1, 2, 3, and 4 and OPR 2, 3, 4, and 5 were not incurred for the drilling and preparation of wells for the production of oil and gas and, therefore, disallowed the deductions claimed for such costs. He further determined that the...

...the expensing of intangible drilling costs. Under current tax law, intangible drilling costs (IDC's) are defined as expenditures that in themselves do not have salvage value and are incident to and necessary for the drilling of wells and the preparation of wells for the production...

...discussion let me restate their definition. Under current tax law, intangible drilling costs [IDC's] are defined as expenditures that in themselves do...and are incidental to and necessary for the drilling of wells for the production of oil and natural gas. Examples would include wages, fuel, drilling muds,...

...Independent producers may elect to expense all IDCs. IDC's include expenditures by the operator Incident to and necessary for the drilling and preparation of wells for the production of oil and gas. They include amounts paid or accrued by the property operator for drilling and development work...

...independent producers may elect to expense all IDCs. IDC's include expenditures by the operator incident to and necessary for the drilling and preparation of wells for the production of oil and gas. They include amounts paid or accrued by the property operator for drilling and development work...

...the expensing of intangible drilling costs. Under current tax law, intangible drilling costs (IDC's) are defined as expenditures that in themselves do not have salvage value and are incident to and necessary for the drilling of wells and the preparation of wells for the production...

...are all expenditures made by an operator for wages, fuel, repairs, hauling, supplies, etc., incident to and necessary for the drilling and preparation of wells for the production of oil and gas (5). Generally, an expenditure is classified as an intangible drilling and development cost if...

...hauling, supplies, etc., which in themselves are not considered as having a salvage value, incident on or gas. See section 88.23(m)-16 of Regulations 118. The new option applies only to a taxpayer whose...