Intangible drilling costs may be expensed rather than capitalized and written off through depletion.

Name: Intangible drilling costs may be expensed rather than capitalized and written off through depletion.
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Question

Quizplus · Accepted Answer

Intangible drilling costs, such as labor, drilling fluids, and site preparation, may be expensed in the year they are incurred rather than capitalizing and writing off through depletion over time. This is a tax advantage for oil and gas companies.

Intangible Drilling Costs May Be Expensed Rather Than Capitalized and Written