Tag Archive: "#section174"
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Section 174 Fix (sort of)? Early end of ERC? Bonus back up to 100%? The Tax Relief for American Families and Workers Act of 2024
Why wouldn’t we want to get a new tax bill that impacts 2023 returns in 2024? It seems that Congress believes we may be due. The House Ways and Means Committee has announced a bipartisan bill to provide tax relief through renewal of some previously expired provisions, but pays for it with some changes to […]
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Tech companies should plan now for Section 174 capitalization for tax year 2023 and beyond
Will it get fixed? This time last year there was optimism that a 2022 year-end fix would be passed by Congress and Section 174 research capitalization would be deferred or eliminated altogether. Instead, Congress failed to act and tax year 2022 proved to be one of the most challenging for taxpayers subject to Section 174. […]
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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 […]
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While we wait for a Section 174 fix, software companies may feel the largest impacts
Taxpayers and practitioners had hoped that a “fix” under Section 174 would have been addressed by Congress already. 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 […]