We Understand Section 174 vs Section 41

Podcast

Strengthening Client R&D Tax Credit Claims: Key Areas Often Overlooked

On Let’s Talk Tax, host ⁠TJ Sponsel⁠ and guest Audrey Asfoor discuss the intricacies of ⁠R&D tax credit⁠ documentation. This episode delves into the importance of proper documentation, the challenges faced by various industries, and the benefits of on-site fieldwork for clients.

Webinar

Distinguishing Section 174 from Section 41

In this webinar, David Seibel and TJ Sponsel walk through distinguishing Section 174 from Section 41. David and TJ overview the current landscape, explain the technical differences, discuss how CPAs should be approaching this with clients, and how to construct 174 calculations. The webinar concludes by overviewing the firm’s current and future outlook for the R&D tax credit.

In The News

Is the R&D Credit 280C election still relevant?

There has been much discussion recently regarding the Tax Cuts and Jobs Act Section 174 amortization requirement that took effect for tax years beginning after Dec. 31, 2021.

Because of this provision, taxpayers are now required to amortize their research expenditures over five years for domestic costs and 15 years for foreign research costs. However, a conforming amendment in Section 280C has the potential to provide a much-needed boost to those companies that also claim the Section 41 R&D Credit.