SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Strictly: Drilling and oil-field services
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: isopatch who wrote (71955)8/29/2000 5:30:52 PM
From: hdrjr  Read Replies (1) of 95453
 
Isopatch,

"HGT is a NG royalty trust, that I averaged into in Dec and Jan. It pays very large monthly distributions that are tax deferred by depletion and depreciation deductions."

The following is from a HGT SEC filing in July I believe.

"Federal Income Taxes

Tax counsel has advised the trust that, under current tax laws, the trust will be classified as a grantor trust for federal income tax purposes and therefore is not subject to taxation at the trust level. However, the opinion of tax counsel is not binding on the Internal Revenue Service.

For federal income tax purposes, unitholders are considered to own the trust's income and principal as though no trust were in existence. The income of the trust is deemed to be received or accrued by the unitholders at the time such income is received or accrued by the trust, rather than when distributed by the trust.

Cross Timbers has advised the trustee that the trust receives royalty income from tight sands gas wells. Certain tight sands gas produced and sold through 2002 qualifies for the federal income tax credit for producing nonconventional fuels under Section 29 of the Internal Revenue Code. This
tax credit is recalculated annually based on each year's qualifyingproduction. The 1999 tight sands tax credit was $0.016 per unit. Tight sands tax credit data for 2000 will be provided to unitholders with year-end tax information. Unitholders should consult their tax advisors regarding use of this credit and other trust tax compliance matters."

hdr
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News