There is another tax benefit oil and gas investors need to understand.
It is called the depletion allowance.
15% of the cash flow from an oil investment can receive this tax treatment.
So if an oil deal generates $100,000 in cash flow, the taxable portion would be $85,000.
That means $15,000 could come to you tax-free.
The exact tax treatment depends on the investment and your situation.
Comment down below if you want me to break down how the depletion allowance works.