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Can the r&d tax credit be used to offset the alternative minimum tax?

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.

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HOW 2022 EQUALS LIFO OPPORTUNITIES

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.

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Cost Segregation and Estate Planning

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.

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How Inflation Drives LIFO Planning

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.

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R&D Tax Credits Refundable or Recoverable?

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 …

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What is the R&D Tax Credit Carryforward Period?

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 …

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Another Source of Cash from Government Tax 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…

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R&D Tax Credits for Software Development

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 …

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Raise a Glass for R&D Tax Credits in the Craft Brewing Industry

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 …

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Is Your A&E Firm Benefiting from R&D Tax Credits?

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…..

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Wondering How to Offset Payroll Tax with R&D Tax Credits?

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.

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Impact of the Tax Cuts and Jobs Act on R&D Tax Credits

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.

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R&D & Energy for Real Estate Tax Accounting Methods

Construction and real estate firms often ask us: “How do we qualify for the R&D tax credit?” Our boilerplate answer is to review the 4-part test below to ensure you have a qualification marker that covers the activities you are performing to create or improve your products or processes.

By Brian Coddington, Max Vignola, Imran Syed | 15 Nov

New Small Firm Cost Seg Opportunities

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.

By Brian Coddington | 12 April

Can the R&D Tax Credit Be Used to Offset the AMT?

The Protecting Americans from Tax Hikes (PATH) Act of 2015 includes provisions that allow certain taxpayers to offset their AMT liability with the R&D tax credit for taxable years beginning on or after Jan. 1, 2016.

By Alex Pak | 7 April

How the R&D Tax Credit Has Expanded Over the Years

Governments typically incentivize private industry to produce research and development (R&D) as a strategic tool to advance their economies.

By Deb Roth | 8 April

The Nine-Point Plan for Handling §179D

Section §179D can help your commercial real estate clients reduce taxable income and increase cash flow significantly.

By Source Advisors | 24 March

Reconciliation bill likely to have a tax impact on energy-efficient buildings

It’s no secret that climate change is a top priority for the current administration. As part of the hotly debated tax and spending legislation moving through Congress

By Source Advisors | 28 October

How Integrators Can Take Advantage of Incentives and Tax Savings

Integrators who have experienced a dip in business during the pandemic may be able to take advantage of a few lesser known tax credits and income tax deductions.

By Source Advisors | 11 August

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