Case Studies

R&D Tax Credits for Blockchain Development

A Comprehensive Source Advisors Case Study

R&D Tax Credits for Blockchain Development

The tax landscape for blockchain development companies is complex and often misunderstood. Dive into this case study to understand how Source Advisors cracked the code to reveal significant tax savings for a FinTech startup specializing in algorithmic cryptocurrency trading.

What Qualified as R&D?

In the fast-evolving world of FinTech, this startup qualified for R&D tax credits through several key activities. These included the development of an Alpha Model for market prediction, fine-tuning of trading algorithms, and the creation of a robust data warehousing system. Each of these activities involved substantial technological uncertainties and required iterative testing, making them eligible for significant R&D tax benefits.

The Source Advisors Solution

Source Advisors stepped in following a recommendation from the firm’s audit partner. A feasibility analysis was first conducted to give an estimate of the potential R&D tax credit benefits.

Detailed Analysis

Thoroughly evaluated the alpha model and data warehousing systems to identify R&D qualifying activities.

Financial Impact Assessment

Carried out a meticulous financial study to estimate potential R&D tax credits.

Compliance Checks

Ensured all activities were compliant with federal and state R&D tax credit laws.

The Results Speak for Themselves

After the completion of the comprehensive study, Source Advisors identified R&D tax credit opportunities that resulted in:

$ 0
in Combined Federal and State R&D Tax Credits

This allowed the company not just to offset its payroll tax but also to take the credit against their normal tax liability, due to their highly successful first year.

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Don’t miss out on the valuable tax credits that could boost your businesses growth.

Contact Source Advisors today to explore how we can unlock tax advantages for your blockchain development company.

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