New IRS Guidance for Section 174 R&D Capitalization

Learning Objectives

• To develop a comprehensive understanding of the new IRS guidelines and their practical application for your clients.
• To discuss how the updated guidance offers relief for clients dealing with expenditure uncertainties.
• To analyze and learn to differentiate internal use software and reduce capitalized amounts, ultimately lowering tax liabilities.
• To identify the specific forms necessary for accurately reporting these expenses on clients' tax returns.
• To explain and equip yourself with the knowledge to assist clients in making informed decisions about Section 174 R&D capitalization.

Course Description

Are you grappling with the recent changes to Section 174 R&D capitalization and wondering how to navigate through the complexities? Join our enlightening online course, titled " New IRS Guidance for Section 174 R&D Capitalization," where we will provide the insights and strategies you need to address this challenging issue.

In this CE Tax webinar, you will achieve a comprehensive understanding of the new IRS guidelines and how to interpret them effectively for the benefit of your clients. We'll explore the favorable aspects of the guidance, which offers relief to clients facing uncertainties about their expenditures. Additionally, you'll learn to distinguish internal use software and reduce capitalized amounts to minimize tax liabilities. Identifying the necessary forms for accurate reporting of these expenses on clients' tax returns will be covered, equipping you with the knowledge to guide clients in making informed decisions regarding Section 174 R&D capitalization.

This year, practitioners have faced one of the most significant challenges in understanding and adapting to changes in Section 174 R&D capitalization. We've developed internal best practices, many of which have been confirmed by the recent IRS guidance, bringing much-needed clarity to the treatment of these expenditures.

Major Topics Covered:

• Understanding R&E expenditures, including the qualified research definition.
• Identifying qualifying expenses and eligible employees for R&E expenditures.
• Addressing overhead costs, excluded activities, and software development activities.
• Exploring amortization deductions, R&D credits, and §174 expenditure changes.
• Analyzing the effects of §280C elections, R&E adjustments, and state conformity to §174.

Don't miss this opportunity to enhance your expertise and confidently navigate the complexities of Section 174 R&D capitalization in the ever-evolving tax landscape. Register now and stay ahead in your profession.

Overview

• R&E expenditures - Background

  3 mins
• Tax cuts and job acts of 2017 (TCJA)

  13 mins
• What about overhead costs?

  22 mins
• Which software activities don't qualify?

  34 mins
• Research performed under contract

  40 mins
• R&D credit adjustments to R&E

  46 mins