You can make an election under IRC section 59 (e) to write off
intangible drilling costs over 60 months for regular tax purposes, and eliminate an entry on this line.
Working with Democrats and some Republicans in Congress, he tried several times to repeal the industry's three biggest tax breaks: the expensing
of intangible drilling costs, percentage depletion, and the manufacturing deduction.
A century ago Congress adopted a provision that allowed companies to write off «
intangible drilling costs» in the first year of exploration.
You can usually write off
the intangible drilling cost 65 %, 70 %, 80 %, in some cases, 90 % of your investment in the first year.
Line 26:
Intangible drilling costs: This line relates to the difference in timing of the deductions for intangible drilling costs.
There are things like mining costs,
intangible drilling costs, and research and experimental costs.
Potential business expenses for you might include travel; a portion of your rent or mortgage interest, home insurance, and utilities if you're working at home; office supplies; health insurance;
intangible drilling costs (really!)
U.S. Sen. Max Baucus has proposed delaying industry's ability to write off
intangible drilling costs (IDCs) and doing away with the «last - in, last - out» accounting method (LIFO) used by a number of energy companies.