Oil & Gas Tax Deduction Calculator

Estimate your first-year federal and state tax savings from Intangible Drilling Cost (IDC) deductions. Adjust for your income type, bracket, and investment size.

Your situation

Annual gross income $500,000

Primary income type

W-2 Business Cap gains Crypto

Filing status

Married filing jointly Single

Federal bracket 37%

32% 35% 37%

investment

Investment amount $100,000

IDC deduction rate 80%

State income tax rate 5.0%

Estimated first-year tax savings

—

IDC write-off —

Net cost after tax —

Tax ROI —

IDC deduction yr 1

—

intangible drilling costs

Federal tax saved

—

at your bracket

State tax saved

—

Net cost of investment

—

after all tax benefits

Breakeven return

—

on net-of-tax cost

Depletion allowance

15%

of ongoing production income

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For educational purposes only. This tool does not constitute tax or legal advice. IDC deductibility depends on income type, passive activity rules, and IRS qualification. Results are estimates only. Consult a qualified CPA or tax attorney before making investment decisions.