BarbriSFCourseDetails
  • videocam Live Webinar with Live Q&A
  • calendar_month April 20, 2026 @ 1:00 p.m. ET./10:00 a.m. PT
  • signal_cellular_alt Intermediate
  • card_travel Tax Preparer
  • schedule 110 minutes

Tax Reporting of Oil and Gas Investments: OBBBA's Impact, Royalty Income, Cost vs. Percentage Depletion

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Discount expires 2/23/26

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About the Course

Introduction

This webinar will provide an overview of the impact of the One Big Beautiful Bill Act (OBBBA) on the oil and gas industry and review the terminology, income, and deductions most often reported to investors in oil and gas and similar industries. Our knowledgeable presenters will explain the types of royalties, methods of depletion, and scouring the K-1 for deductions for these investors.

Description

Provisions in the OBBBA have favorably impacted oil and gas and similar industries. In addition to permanent expensing of R&E, 100% bonus depreciation, and favorable changes to 163(j) interest deductions, certain provisions target energy companies. The OBBBA expanded Section 45Q credits for carbon oxide sequestration, and reduced federal royalty rates from 16.7% to 12.5%. These changes encourage the expansion of oil and gas and similar industries. 

Properly reporting income and expenses from any investment is complex. This burden increases substantially for investors with oil, gas, mineral, or coal interests. Excess intangible drilling costs (IDCs) vs. preference IDC, working interest vs. royalty interest, and excess, cost, and percentage depletion are a few terms and amounts that investors and tax practitioners encounter. For taxpayers who are investors, and not in the oil and gas business, these terms and taxable amounts can be daunting.

Often, tax-saving deductions are somewhat buried on Line 20 of Form K-1, Other Items. All tax professionals confront 1099s and K-1s, most often PTPs, for these investments. It is essential that they grasp the terminology and reporting responsibilities to minimize the taxes these investors pay.

Listen as our experienced speakers address reporting oil and gas investments and the impact of the OBBBA on the industry for tax advisers preparing individual income tax returns.

Presented By

Charlie D. Gibson, CPA
Tax Principal
Withum Smith + Brown, PC

Mr. Gibson is a principal in the Energy and Oilfield Services Team at Withum with over two decades of experience, specializing in corporate and partnership federal and state income tax compliance, as well as accounting for income taxes under ASC 740 for U.S. GAAP reporting. He has extensive experience advising upstream oil and gas companies on complex U.S. federal tax matters and industry-specific reporting, including deep technical knowledge in DD&A and tax basis tracking. Charlie is a licensed Certified Public Accountant in Texas, and his professional background includes experience at global firms, within industry roles, at a publicly traded Fortune 500 company and with middle-market accounting firms.

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Brenden Hampton
Tax Supervisor
Withum Smith + Brown, PC

Mr. Hampton is a Tax Supervisor at Withum Smith+Brown, PC.

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Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

Date + Time

  • event

    Monday, April 20, 2026

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

I. Tax reporting of oil and gas investments: introduction

II. OBBBA provisions affecting energy companies

III. Royalties vs. working interests

IV. How to handle royalty income (and how not to)

V. Oil and gas investments and Schedule K-1

A. Capturing all reported deductions

B. Excess IDC

C. Other items

The panel will cover these and other critical issues:

  • Types of royalty income and relative deductions
  • Relative provisions in the OBBBA
  • When 15% depletion can and should be used
  • Calculating percentage and cost depletion
  • Reviewing Schedule K-1 for cost-saving deductions
  • Key differences between working interests and royalty interests

Learning Objectives

After completing this course, you will be able to:

  • Understand the difference between a working interest and a royalty interest
  • Calculate depletion
  • Handle the Schedule K-1 that has an oil and gas investment (frequently a PTP)
  • Determine which provisions in the OBBBA impact oil and gas investors
  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite:

    Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.


BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .