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I am not sure whether you purchased an ownership share or you mean that you will be operating the well site.
Should you operate the enterprise, the IRS publication states:
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.
These expenses could include your ongoing day-to-day expenses, labor costs, capital purchases and depletion of the oil / gas well.
I am not sure whether you purchased an ownership share or you mean that you will be operating the well site.
Should you operate the enterprise, the IRS publication states:
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.
These expenses could include your ongoing day-to-day expenses, labor costs, capital purchases and depletion of the oil / gas well.
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