Case Studies

Unlocking R&D Tax Credits in the Financial Services Industry

A Comprehensive Source Advisors Case Study

R&D Tax Credits for Financial Services

In the high-stakes arena of hedge fund management, staying ahead of the curve is essential. This case study sheds light on how Source Advisors helped a mid-sized, seasoned hedge fund unearth untapped value through R&D tax credits.

What Qualified as R&D?

The firm’s software development activities involved extensive research, testing, and collaboration among traders, developers, and risk managers. Projects typically ranged from developing advanced trading algorithms to building comprehensive risk management systems. The R&D was an ongoing, iterative process aimed at optimizing the firm’s trading performance and risk management capabilities.

The Source Advisors Solution

Before the engagement, Source Advisors conducted an initial feasibility study to establish a framework for potential tax credits. This was a decisive factor for the hedge fund in choosing Source Advisors over competitors.

Detailed Analysis

Our team scrutinized the specifics of the hedge fund's software development projects, considering factors like complexity, required skills, and associated costs.

Financial Impact Assessment

We reviewed various types of expenses, including labor, third-party software integrations, and other overhead costs. Based on this analysis, we calculated the potential R&D tax credits the firm could claim.

Compliance Checks

We ensured that the identified R&D activities met federal and state tax laws, including rigorous checks on supporting documentation, to ensure they were audit-proof.

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 annual tax credits

These tax savings have been instrumental for the firm, allowing further investment in innovative software solutions and strategies, thereby maintaining their competitive edge.

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Get Started Today!

Don’t let potential R&D tax credits go unclaimed. Your next innovation might just be waiting for that financial push.

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

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