As a CPA, you want to provide your clients with the best service possible. Part of superior service includes saving them the most money, wherever and whenever you can. And a cost segregation study can answer that call to help discover more hidden cash. Read on to find out how.
Is your company aware that certain tax incentives expired within The Protecting Americans from Tax Hikes Act, known as the PATH Act? However, have no fear, there are still many components that are still active.
Even though parts of the PATH Act expired, on the whole, green building tax incentives remain an important tax savings strategy for businesses. In direct proportion to the growing efforts to reduce energy consumption, companies that own commercial or industrial property will continue to need insight and guidance on green building incentives.
Technology companies can and do qualify for valuable tax credits and incentives, such as the R&D tax credit. However, in today’s advanced technological world, the lines are a little blurred when it comes to truly qualifying as a “technology” company.
Social media and networking companies operate in a broad industry that involves the design and development of many different mediums, including business networks, enterprise social networks, social gaming, social networking and video sharing.
To deliver these products and services to customers, social media and networking companies invest heavily in technology and software to conduct their business. Often, these activities and related expenses are deemed as qualified research expenses for R&D tax credit purposes.
Companies that invest in software research and development activities for new or improved software programs and systems can qualify for R&D tax credits under Internal Revenue Code (IRC) Section 41. Whether the software is developed to be a product for sale or developed primarily for internal use, the life cycle follows a standard process involving many qualified research and development activities.
The software development life cycle has several different variations, but many follow a Waterfall or Agile process.
The Internal Revenue Code (IRC) includes “software” as a business component for R&D tax credit purposes. However, the type of software development determines the level of legal tests that must be satisfied (i.e., the four-part test or additional three-part test) for software development activities to qualify for the credit.
Many companies in the U.S. work in the life sciences industry, including firms working in the fields of pharmaceuticals, biomedical, biotechnology and medical devices. For the bulk of companies in life sciences, developing new or improved products involves a complex interaction between the development process, manufacturing process, and regulatory approval and commercialization.