Investing in Oil and Gas mining. Taxbreaks.

[TheSeeker03]

I read this nice little article yesterday.

http://finance.yahoo.com/columnist/article/richricher/1095

This got me thinking about investing in Oil development ot take advantage of taxbreaks. Good idea? Any one have experience with that?

[midas]

1. It's not as simple as you think
2. Most LP's allow you to defer tax liability not avoid it.
3. These tax deal can really backfire if structured too aggressively - tread wisely

[Dan Mezick]

I believe the oil and gas tax credits do make sense if your marginal rate of tax on ordinary income is at the maximum.