Obviously, President Obama is after the tax breaks for oil and gas, but I expect the Republicans in the oil states would fight like dogs protecting their tax breaks, tax breaks that are good for jobs and their economy.
I do not invest in paper assets such as stocks, bonds and mutual funds for three reasons. One, I am not really good at paper assets. Two, there are not enough tax breaks with paper assets. (For example: if I invested in shares of Exxon stock, I would not receive the same tax breaks I receive for oil partnerships.) Three, I like using debt, tax-free money, as leverage in real estate. If I invested in REITs (Real Estate Investment Trusts) I would be a passive investor, not receiving active investor leverage – or tax breaks.
I am not a tax professional. Before making decisions that have (or could have) tax ramifications, please seek the best tax advice possible. A good start is Tom Wheelwright’s article here. I also encourage you to share Tom’s book, Tax-Free Wealth, with your tax advisor. It might be your best tax tip for 2013.