Series 22: 3.1.1. Types Of Costs

3.1.1.  Types of Costs

Costs associated with an oil and gas program are generally tax deductible. When expenses exceed income, the program’s general partners may deduct their DPP losses from their other business income regardless of whether the income from the other businesses is active or passive. Limited partners, as we have just learned, can only deduct their oil and gas losses to the extent they have other passive income.