Monday, October 27, 2008

Oil & Gas Helpful Info. | Triple Diamond Energy Corp.

Participation in oil and gas ventures allows participants to offset other “Active” income.
The Code classifies participation in joint ventures formed to purchase working interests in oil and gas properties as an “active” business activity. This is beneficial because it allows individuals to offset losses stemming from oil and gas joint ventures against other income from “active” businesses. This classification allows participants to use deductions from certain oil and gas ventures against income from salaries, businesses in which they invest, stock dividends and stock trades. The same benefits are not associated with “passive” investments, such as investment in stock in corporations or limited partnership interests in limited partnerships formed to purchase oil and gas properties.

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