Tag Archive: "Section 174"
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And the “Tax Relief Act….” heads to the Senate. What’s in it for Manufacturers?
Hot items in manufacturing (R&D, business interest expense, accelerated depreciation…) are in, so far.
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House Committee Pushes Tax Package with Potential Section 174 Fix, but Uncertainty Remains
A possible fix, but far from a done deal On June 13th, the House Ways and Means Committee advanced a legislative package that could set the stage for a year-end tax bill. The legislation contains a number of tax items, including a deferral of the Section 174 capitalization requirement for research and experimental (R&E) expenditures […]
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Doing R&D outside the USA? It may be time to evaluate your geographical footprint…
Under Section 174, millions of dollars of additional topline may result in a higher tax bill related to international R&D activities. Time to consider re-shoring?
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Uncertainty in the new world of section 174 capitalization
Check out our latest update on research expense capitalization under Internal Revenue Code section 174. Topics include the legislative state of play, confusion over the technical application of section 174, and whether companies should extend their 2022 tax returns. https://www.claconnect.com/en/resources/articles/2023/section-174-capitalization-uncertainty-answers-to-top-faqs
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IRS Issues §174 Capitalization Guidance
On December 12, the IRS issued Revenue Procedure 2023-8 setting forth guidance for taxpayers making accounting method changes under the new §174 capitalization rules that went into effect on January 1, 2022. The guidance comes at a time when taxpayers and practitioners are still hopeful that the capitalization requirement will be deferred or eliminated by Congress and […]
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Taxpayers are still waiting for a Section 174 fix
Taxpayers and practitioners had hoped a “fix” under Section 174 would have been addressed by Congress by now. With the first quarter of 2022 behind us, however, we still have no legislation in place that would defer or eliminate the amortization requirement that went into effect for tax years beginning after December 31, 2021. This […]