481 a Adjustment For Changes in Accounting Methods
Section 481 a adjustment for depreciation is required for any taxpayer who has changed their accounting method or makes or revokes certain late elections.
R&D Payroll Tax Credit
The Research and Development payroll tax credit, also known as the R&D payroll tax credit is a tax incentive designed for qualified businesses to offset their payroll tax. It is designed for new companies that perform research and technology development activities to be able to apply up to $250,000 of research credit against payroll tax liability.
HOW 2022 EQUALS LIFO OPPORTUNITIES
With inflation on the rise, now is the time to look at Last-In-First-Out (LIFO) accounting if you have inventories of building supplies, lumber or hardware. Whether you are already on LIFO or not, analyzing the IPIC LIFO method for 2021 could be a great opportunity. IPIC LIFO uses indexes published by the Bureau of Labor Statics to measure inflation on your inventory.
How do you calculate r&d expenses?
There are two general methods for computing the Research Tax Credit, the Regular Research Credit (RRC) Method and the Alternative Simplified Credit (ASC) method.
Cost Segregation and Estate Planning
Cost segregation is a highly beneficial and widely accepted tax compliance strategy utilized by commercial real estate owners and tenants to accelerate depreciation deductions, defer tax, and improve cash flow. Once used only by big-4 type accounting firms and the nation’s largest real estate owners, this practice has now become routine for commercial property owners of almost every size.
How Inflation Drives LIFO Planning
With both monetary policy and COVID related supply chain disruption driving current and future price increases, safeguarding inventory, often your clients’ largest asset, from the detrimental effects of inflation is now on the minds of many tax advisors.
R&D Tax Credits Refundable or Recoverable?
The R&D Tax Credit is not refundable; however, unused credits can still provide a cash windfall. A commonly asked question: “Is the R&D tax credit refundable?” In other words, can R&D tax credits be easily converted to cash? The short answer is no. R&D tax credits are used to offset a corporation’s income tax or …
What is the R&D Tax Credit Carryforward Period?
When it comes to claiming R&D tax credits, many taxpayers are unaware of the rules allowing them to carryforward the unused portion of their research tax credit. In most situations, a company who has qualifying research expenses but no income can carryforward the credit to offset tax liabilities on future profit. Any unused R&D credits …
Another Source of Cash from Government Tax Credits
Many small and midsize businesses affected by COVID-19 are struggling to maintain their cashflow, operational capabilities, and internal research and development activities. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided some financial relief to these businesses affected by COVID-19…
R&D Tax Credits for Software Development
Companies who develop software for sale or use by customers or third parties, or for operating equipment or products, or for use in their business may be eligible for R&D tax credits. These research credits are a dollar-for-dollar reduction of federal and state tax liabilities. The SA’s R&D tax credit regulations relating to software development …
Raise a Glass for R&D Tax Credits in the Craft Brewing Industry
Who knew the craft brewing industry would qualify for the research tax credit. Ask a Master Brewer about their unique beers and you will likely receive a passionate description of how they constantly explore innovative and diverse styles of beer making to meet market demands and stay competitive. Companies in the brewery industry often invest …
Is Your A&E Firm Benefiting from R&D Tax Credits?
A&E firms, whether developing a sky-rise office building in Manhattan, an advanced suspension bridge or a suburban shopping mall, are faced with a host of technical challenges that require their engineers and technical leaders to devise solutions that are unique, viable and cost effective…..
Innovation Starts with One Small Step
Fifty years ago, the world was riveted to their television sets to see history in the making when the Apollo 11 crew touched down on the moon. Where would technology be today without the ingenuity and courage of the NASA space program?
Pennsylvania Introduces R&D Tax Credit Electronic Application
As part of its “Government that Works” program, the Pennsylvania Department of Revenue recently introduced a new online-based application process for taxpayers who apply for the state’s Research and Development tax credit. All Pennsylvania R&D tax credit applications must be submitted through the new online platform.
Wondering How to Offset Payroll Tax with R&D Tax Credits?
The Protecting Americans from Tax Hikes Act of 2015 (The PATH Act) created an opportunity for qualified small businesses to offset all or a portion of their contribution to payroll tax using federal R&D tax credits for up to five years. Business owners and executives interested in saving valuable payroll tax dollars need to understand the following key points.
Impact of the Tax Cuts and Jobs Act on R&D Tax Credits
The largest and most complex tax cut in U.S. history, the Tax Cuts and Jobs Act (TCJA), has left American business owners wondering how the changes to the tax code will affect them and their businesses. In the coming months, business executives and their tax preparers will be scurrying to reformulate their tax strategies and business plans ahead of year’s end.
R&D Tax Credit: Qualifying and Non-Qualifying Research Activities
Are you taking full advantage of the Research and Development (R&D) Tax Credit? The R&D tax credit can provide huge tax savings regarding the expenses incurred for qualifying activities. So, what exactly are qualifying research activities?