Tax bill failure in Senate could decimate small-biz R&D
Accounting Today
Accounting Today, an Arizent brand, is the independent news and information resource for tax and accounting professional
While large companies can afford not to currently expense research and development costs, but many small companies can't, say experts.
Sign up here to receive Accounting Today's Daily Newsletter — delivered to your inbox every morning.
The Senate's failure to approve a measure passed earlier this year by the House has delayed, for now, a solution to the quandary faced by many small and midsized technology companies.
In other stories today:
As the pipeline dries up, 83% of senior leaders report a talent shortage this year, up from 70% in 2022, with 10% this year saying it's worsening.
When asked to rate how much they use generative AI tools on a scale from 1-10, accountants rated their overall use at 1.56
Top 25 firm Cherry Bekaert announced its acquisition of accounting tech provider Kerr Consulting, becoming one of the largest Sage providers in the United States.
The document includes the top priorities outlined by investors.
TaxDome announced the release of TaxDome AI, meant to facilitate document management tasks.
Your guide to R&D tax credits, Section 174 Compliance, and business growth.
3 个月It's nearly impossible to have a sure business without quality expenses under section 174. This bill really hurts small business as getting a 100k addition to your tax bill will hurt them the most. R&d tax credits and other creditscan be used to offset some of that added liabiliti but usually not completely. Another bad part is that if you're not claiming r&d tax credits you are still required to amortizatize the expenses. Most cpas aren't equipped to handle this either so it's going to be a big mess when the IRS starts auditing businesses. There is also talk that CPAs will start getting fined if returns aren't filed properly. This could have easily been fixed by keeping amortization for foreign expenses and continuing things the way they were. If anyone has any questions on either feel free to reach out.