Because of the turbulence in the global energy markets lately, the fourth quarter tax planning season is a perfect time to discuss the Income Tax benefits of domestic oil and natural gas exploration.

The United States Congress passes laws that benefit U.S. business owners because Congress recognizes that business owners are the engine for the growth of the U.S. economy. Congress helps business owners by offering them tax incentives – legislation containing Income Tax deductions and tax credits.

 These tax incentives are designed by Congress to help U.S. business owners prosper and grow, which in turn helps propel the U.S. economy. When people see Income Tax deductions and Tax Credits in the IRS Code, they are not seeing “ loopholes for the rich ”. These are tax incentives for American business owners. Congress passes legislation intended to grow the US economy, and the IRS codifies the law by writing the tax “ Code ”.

The Constellation Group is a world-wide, world-class builder of specialty teams that provides Income Tax Reduction and Asset Protection solutions to entrepreneurs and business-owners. Constellation specializes in this one discipline only – Income Tax Reduction pays for Asset Protection. Constellation teams up with the client’s existing trusted advisors—their accountants, attorneys, private bankers, and real estate agents—to design multiple Income Tax Reduction and Asset Protection solutions.

Fraser Allport, founder of The Constellation Group, said, “ There are numerous IRS Code sections that allow significant Income Tax deductions for the domestic exploration of oil and natural gas. A brief listing shows how serious Congress is about giving US business owners tax incentives that help finance energy independence in this country. ”

Some of the IRS Code sections and the benefits that they provide to business owners are described in detail below. For example:

·    IRS Code Section 263 ( c ) allows up to 90% of every dollar invested in domestic oil and gas exploration to be tax deductible in the year in which the investment is made. Or, the Income Tax deductions can be capitalized and amortized over 60 months. ( IRS Code Section 59 ( e ) )
·    IRS Code Sections that provide for a 40% reduction of the Alternative Minimum Tax. ( IRC Sections 55 and 57 )
·    IRS Code Sections pertaining to depreciation and depletion allowances allow annual income from oil and gas ventures to be tax-favored. ( IRC Sections 611 and 613 )
·    A section that allows for passive losses from oil and gas to offset passive income from investment real estate. This means that if a business owner has rental property, oil and gas royalty income can be used to offset real estate rental income.
     ( IRC Section 469 )

“ These Income Tax Deductible oil and gas programs are available for individuals as well as corporations, “ said Fraser Allport. “ Additionally, regardless of Income Tax benefits, the world energy markets are in full-gear to the upside, so diversifying one’s portfolio into oil and gas today may well be lucrative timing from an investment perspective. “

For the entrepreneur business owner and their close advisors, the message is urgent, according to Allport. “ Tick-tock. There are only 79 days remaining in 2004 for a business-owner and their advisors to initiate the process. Don’t let these Income Tax Deductions expire with the calendar. Get proactive. Use The Power of Teams and you will get results. We business-owners work too hard to burn money by needlessly over-paying an already-large annual Income Tax bill, simply because we aren’t aware of the Income Tax Deductions available to us in the law. Our mantra is always the same – Learn The Rules. Follow The Rules. Hire The Right Team. "

To learn more about how The Constellation Group practices Income Tax Reduction and Asset Protection, visit Constellation online at www.TheConstellationGroup.com .

Advisors and their clients can also call Constellation at their Miami Beach Headquarters at 305–532–1231 or 1–800–752–7971 to schedule a Free 30-minute phone consultation with Fraser Allport.

About The Constellation Group

The Constellation Group has become a global clearinghouse for the finding and sharing of knowledge about Income Tax Reduction and Asset Protection. Constellation is dedicated heart and soul to providing Service like it used to be. They are romantics when it comes to the eternal ideal of what Service should be. That is why The Constellation Concierge was born, Group’s sister company, www.TheConstellationConcierge.com .