For tax years beginning in 2022, Internal Revenue Code Section 174 (Sect. 174) requires taxpayers to capitalize and amortize specified research or experimental expenditures. Taxpayers can follow the Internal Revenue Service (IRS) guidance to adopt this new capitalization/amortization method by filing a statement with their 2022 tax returns.
Sounds like a simple accounting method change, but there are many questions left open for taxpayers to navigate. Join leaders from the Cherry Bekaert Tax Credits & Incentives Advisory team as we answer these questions and cover:
- Define research and experimentation and software development qualifying expenses
- Discuss what is not considered Sect. 174 expenses
- Determine how your industry is impacted by the Sect. 174 changes
- Learn how to file for the accounting method change through IRS guidance
- Address issues that are still uncertain or unknown
Learn more about Cherry Bekaert’s Tax Credits & Incentives Advisory Services
