It is common for corporations to hire third-party software developers when conducting research and development activities, and the associated expenses are often overlooked since the consultants are not employees of the corporation.
When contractors perform research for your software development, you may incur both expenditures that would constitute qualified expenses and those that would not. For example, wages paid to a contractor would qualify, but travel expenses or paying rent would not.
As companies look to claim R&D tax credits for their software development activities, one often overlooked expense is payments made to consultants or contractors performing research activities for the company.
This qualifying expenditure for contract research expenses is defined under IRC §41(b)(3)(A) as 65% of “any amount paid or incurred by the taxpayer to any person (other than an employee of the taxpayer).”
As the need for assisted living facilities is on the rise, the challenge with healthcare financial management is budgeting while also investing in growth. There’s a delicate balance you must strike between reducing costs and making investments to maintain your health system’s competitive edge and provide outstanding patient care.
To relieve your financial worries and take control of future growth, tax incentives free up money to invest back into your long-term care facilities.
There’s no refuting it: Green building incentives are on the rise. As more programs are offered to incentivize businesses to become more energy efficient, the time is ripe for taking advantage of these tax benefit programs.
To truly maximize your green building tax benefit with minimal obstacles along the way, you definitely do not want to launch into claiming these benefits without establishing a proper process. Too often business either don’t capture as many benefits as they could, or worse, are audited due to unsubstantiated claims.
There are specific instances in which CPAs simply don’t know what they don’t know about capturing R&D tax credits, and the choices made can manifest into issues later down the line.
The following are some signifiers of problematic practices for claiming R&D tax credits:
As a CPA, when considering real estate tax strategies for your clients, you may be wondering which clients warrant a formal fixed asset review outside of the efforts made by your firm or your client when maintaining annual tax depreciation.
As you consider outsourcing fixed asset review work to a tax consulting firm, keep the following questions in mind:
The recently issued “repair regulations” provide guidance regarding the capitalization of amounts paid to acquire, produce or improve tangible property.
Final tangible property repair regulations provide rules covering three general areas:
The Pennsylvania Keystone Opportunity Zone Program was created in 1998 as part of the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act.
The program is administered by the Department of Community and Economic Development, and is a partnership between state and local government in collaboration with the Department of Revenue and the Department of Labor and Industry.
