The only asset class where losses are non-passive by statute.
Under §469(c)(3), a working interest in oil and gas held directly (not through an LP) is non-passive by statute — losses offset any income. Intangible Drilling Costs (IDCs) are 70–85% deductible in year one. A $100k investment can generate $70–85k in immediate deductions against W-2 or business income, plus depletion allowance on production.
Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.
Multiply the $10M §1202 exclusion across multiple trusts.
4% corporate tax + 0% capital gains for bona fide residents.
Stack the $500K primary-home exclusion on top of a 1031 deferral.
Convert Traditional to Roth during sabbaticals or business-loss years.
Capitalize property taxes and interest on undeveloped land.
Deduct now, control forever, employ heirs.
Ordinary loss (not capital loss) on failed small biz — up to $100K.
Buy leveraged real estate inside your IRA — tax-deferred or tax-free.