Member Appreciation Series featuring Corporate Tax Advisors: Understanding the New Code Section 174: Capitalization and Amortization of R&D Expenses

Before 1/1/2022, a company that incurred research and experimentation (R&D) expenses could deduct them in the current tax year OR elect to amortize them over 60 months. The default treatment was to deduct R&D costs immediately. However, the law changed for costs incurred beginning 1/1/2022. These R&D costs cannot be deducted currently anymore. Instead, it is mandatory to capitalize them and amortize them over 60 months. Many taxpayers think this means taking the R&D costs reported on Form 6765 and amortizing them. That is not the case, however. Join, Mike Woeber, CEO, as he walks through “Understanding the New Code Section 174: Capitalization and Amortization of R&D Expenses."