WorldWide Drilling Resource

9 DECEMBER 2021 WorldWide Drilling Resource ® RENEW - SUBSCRIBE NOW! New PDC Reamer from Infinity Tool Mfg. Infinity Tool Mfg. is introducing a revolutionary new PDC rock reamer with replaceable cutters. The Shark PDC Reamer has a never-ending supply of teeth. The new reamer was born out of a simple concept, to enable a rapid change of cutters on- site, minimizing downtime. The bottom line, no more sending reamers in for repair or buying new. Just fit a new segment and be back up and running in minutes. Each cutter segment is installed with hand tools, max- imizing reaming time and minimizing cost. Additionally, every segment has the same design, so they are interchangeable - no matter which position on the reamer blade and no matter what size of reamer. Features of the new Shark PDC Reamer: • Replaceable cutter segments supplied in kit form with everything needed to replace a segment. • Available in sizes from 14 to 48 inches. • Increased penetration rates for faster project completion - up to fives times faster than conventional methods. • Reaming up to 12 inches extra diameter in one pass. • Less stress on the drill rig - lower torque required and less vibration on the rods. • No moving parts for increased reliability. • Clean holes with a consistent size. For a link to this website, visit this page at: worldwidedrillingresource.com Drilling Into Money Not Boring by Mark E. Battersby Special Records for Special Tax Savings Records are important not only for backing up tax deductions but also to qualify for traditional loans or many of the government’s recent funding programs. Consider the special recordkeeping necessary for write-offs such as: • Net Operating Losses , are often used up relatively fast, but not always. Many drilling businesses suf- fered huge losses last year and those losses can be used to offset future profits. Since those losses may be used in future tax years, all documentation needed to prove that loss, not merely the loss year’s tax return, means keeping proper records. • Business Credits offset taxes but, if there is little or no income, there may be little or no tax bill to offset. If the credit can’t be used currently, it might qualify to be carried forward. The rule here is similar to net operating losses, although only data related to the amount of the credit and how much was utilized is necessary. • Most property-related records should be kept until the Internal Revenue Service (IRS) can no longer audit that year’s tax return. The purchase of equipment or other assets means saving the purchase documentation along with records of improvements made to it for three years after its disposal. • Installment Sales , those transactions where payments - and the portion of the gain attached to each payment - may be reported on a return in later years. Not only will the property’s original basis be needed, but records documenting improve- ments made, depreciation taken, and a copy of the sale document are also necessary. • The majority of drilling businesses are careful to put acquired assets on the books and take depreciation. All-too- often, however, when assets are sold, scrapped, converted to personal use, destroyed, etc., they are not always retired. If the asset is sold for more than its adjusted basis (generally cost less depreciation taken), it will result in either an ordinary or a capital gain. If it’s disposed of for less, an ordinary loss could result. Well-organized records make it easier to prepare the annual tax returns and help provide answers should the return be selected for scrutiny by the IRS. Without records, how can any owner or manager monitor the progress of his or her drilling operation and guide it to increased profits? Every drilling contractor, business owner, partner, or manager should consult a professional about today’s increasingly more complex recordkeeping requirements. Mark Mark E. Battersby may be contacted via e-mail to michele@worldwidedrillingresource.com

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