Coping with Covid-19 and the Collapse in Oil Prices: 7 Ways to Reduce Your Tax Burdens

As the coronavirus pandemic continues to run rampant throughout the United States and around the globe, many industries—not just the health sector—are beginning to feel its devastating effects. This pandemic will be a game changer for one in particular—the energy industry. As people continue to stay home, businesses remain closed, and countries essentially shut down, oil prices have plummeted as the demand for crude oil is halted. Despite the unprecedented cuts to global oil production, not enough has been done to salvage commodity prices. Here in the US, WTI crude is hovering in the low $20s per barrel, and could decrease even more.

To add insult to injury, the 2020 property tax values for working interest and royalty owners in Texas, based on an average of the previous year’s pricing, have been released in the $50s per barrel—causing some royalty owners to pay more in tax than they will recoup in sales.

Merit Advisors can help your business navigate its current tax burdens by reducing your taxable value and working with you to create personalized solutions that will solve your current financial challenges and prepare you for the future.

So, how can we help?

We are confident that our team of experts can help you achieve your tax and financial goals, and we’re here whenever you’re ready. Reach out to one of our advisors today to get started.