Mandatory Capitalization Of R&D #148

Simply Tax

For tax years beginning after December 31, 2021, the legislation informally known as the Tax Cuts and Jobs Act eliminated the option to deduct research and development (R&D) expenditures, which include software development costs. Host Damien Martin sits down with guest Mike Boenzi, the national leader of FORVIS’ R&D tax credit services, to break down the new mandatory treatment and help you prepare for the immediate and long-term potential impacts of this change. Here’s what they cover:

• Who is Mike Boenzi? @00:53
• What is IRC Sec. 174 and how did it change effective January 1, 2022? @05:00
• How might this change impact taxpayers? @07:06
• Are there practical tips for documentation? @15:44
• What is the history of the R&D tax credit and who should consider it? @21:05
• What’s the significance of recent developments in IRS examinations and guidance? @34:53
• What are takeaways and action items? @43:21

ADDITIONAL RESOURCES

• Archived webinar: Preparing for the Required Capitalization of Research & Development Costs: A Practical Perspective (August 31, 2022)
• Articles:
  • The R&D Tax Credit: Lowering the Cost of Innovation for Food & Agriculture Businesses (August 16, 2022)
  • Missouri to Reinstate the Research & Development Tax Credit (June 17, 2022)
  • Mandatory Capitalization of R&E Costs - Are you Ready? (February 22, 2022)
• Simply Tax:
  • Simply Tax Talks | February 1, 2022 | A Big R&D Change (February 1, 2022)
  • Episode 44: The R&D Tax Credit (September 26, 2018)

Learn more about Mike and get additional resources here!

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