Taxes Before Year-End: Using Oil & Gas Investments to Lower Ordinary Income

Taxes Before Year-End: Using Oil & Gas Investments to Lower Ordinary Income

Author: Lane Kawaoka, PE November 25, 2025 Duration: 1:03:34

In this episode, Lane and guest tax expert Jack Hollander dive into strategies for offsetting ordinary income through oil and gas investments. They discuss the unique tax benefits, including intangible drilling costs and depletion allowances, and how these can provide significant deductions for high-income earners. The conversation addresses common mistakes with passive losses and real estate professional status, provides insights into how to properly utilize oil and gas investments, and answers questions on minimizing tax liabilities and optimizing portfolio strategies.


00:00 Introduction to Tax Deductions in Oil and Gas Investments

00:39 Understanding Passive and Ordinary Income

01:11 Limitations of Passive Losses

02:09 Real Estate Professional Status and Short-Term Rentals

02:48 Introduction to Oil and Gas Investments

03:02 Misconceptions About Bonus Depreciation

06:08 Importance of Consulting Professional Advisors

07:42 Basics of Tax Law and Income Buckets

12:07 Financial Planning and Investment Considerations

13:24 How Oil and Gas Investments Fit into a Portfolio

15:23 Tax Benefits of Oil and Gas Investments

23:53 Intangible Drilling Costs (IDCs) Explained

35:16 Understanding Passive Losses and Tax Benefits

35:53 Investment Strategies for Self-Employed Individuals

36:33 Navigating Tax Forms and Returns

37:27 Managing Investment Expectations

38:37 Cash Flow and Tax Savings

39:49 Evaluating Oil and Gas Investments

41:15 Portfolio Diversification and Tax Planning

43:15 Risk Management in Oil and Gas Investments

53:09 Using IRAs and Roth Conversions

01:03:01 Final Thoughts and Upcoming Events


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Hosted by Lane Kawaoka, PE, The Wealth Elevator Podcast: Real Estate, Taxes, Investing is a practical conversation about building wealth beyond a traditional salary. Lane started in 2009, purchasing small rental properties while working as a W2 engineer, and has since helped manage over $2.1 billion in assets as a general partner. This journey forms the backbone of the discussions, where he breaks down a clear, three-step system for financial growth. You'll hear detailed explorations of alternative investments designed to diversify a portfolio, alongside deep dives into strategic tax planning. The focus is on actionable knowledge, moving from theory to the real-world mechanics of investing. Each episode aims to demystify complex topics, offering a path that has been personally traveled. This isn't about get-rich-quick schemes; it's a methodical look at creating lasting financial freedom through real estate and other asset classes. Tune into this podcast for straightforward advice from someone who has navigated the path from employee to investor, sharing lessons learned to help others elevate their own financial trajectory. The tone is direct and informed, rooted in Lane's professional engineering background, making complex subjects accessible for anyone ready to take control of their financial future.
Author: Language: English Episodes: 100

The Wealth Elevator Podcast: Real Estate, Taxes, Investing
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