For tax years beginning after December 31, 2021, the legislation informally known as the Tax Cuts and Jobs Act eliminated the option to deduct research and development (R&D) expenditures, which include software development costs. Host Damien Martin sits down with guest Mike Boenzi, the national leader of FORVIS’ R&D tax credit services, to break down the new mandatory treatment and help you prepare for the immediate and long-term potential impacts of this change. Here’s what they cover:

• Who is Mike Boenzi? @00:53
• What is IRC Sec. 174 and how did it change effective January 1, 2022? @05:00
• How might this change impact taxpayers? @07:06
• Are there practical tips for documentation? @15:44
• What is the history of the R&D tax credit and who should consider it? @21:05
• What’s the significance of recent developments in IRS examinations and guidance? @34:53
• What are takeaways and action items? @43:21

ADDITIONAL RESOURCES

• Archived webinar: Preparing for the Required Capitalization of Research & Development Costs: A Practical Perspective (August 31, 2022)
• Articles:
  • The R&D Tax Credit: Lowering the Cost of Innovation for Food & Agriculture Businesses (August 16, 2022)
  • Missouri to Reinstate the Research & Development Tax Credit (June 17, 2022)
  • Mandatory Capitalization of R&E Costs - Are you Ready? (February 22, 2022)
• Simply Tax:
  • Simply Tax Talks | February 1, 2022 | A Big R&D Change (February 1, 2022)
  • Episode 44: The R&D Tax Credit (September 26, 2018)

Learn more about Mike and get additional resources here!

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