Unlocking Opportunities: The Work Opportunity Tax Credit for Veterans and Ex-Felons

Written by Rachel Zarate Brouwer. Updated Jul 25, 2023.

You’ve seen the advertising for larger companies – slogans like “Hire a Vet” or “We Offer Second Chances” – appealing to certain groups that would be interested in applying for a job, sparked by this type of focused outreach. To combat the labor shortage that some companies are facing, they are expanding their hiring pool to drum up new applicants that might have barriers to employment. These hiring initiatives help to drive down the unemployment rate for groups that have a hard time re-entering the workforce after transitioning from challenging life experiences.

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From Blueprint to the Courtroom, the Harper Case is a Win for Design Firms

Written by Katherine Johnson, Esq. Updated Jun 6, 2023.

For several years, CTI has championed construction companies’ eligibility for the credit for increasing research activities (“R&D tax credit”) under Section 41. We have worked with numerous construction companies to successfully identify, calculate, and substantiate the credits. The most recent tax court opinion lends support to the qualification of many aspects of design-build construction projects.

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174 is on the move - What you should know!

Written by Katherine Johnson, Esq. Updated May 18, 2023.

Current State of Section 174

As discussed in our recent blog, the Tax Cuts and Jobs Act (TCJA) of 2017 included a delayed provision that requires taxpayers to begin capitalizing and amortizing research and experimental (R&E) expenditures under Section 174 for tax years beginning after December 31, 2021. Prior to this provision, taxpayers had the option to deduct R&E costs in connection with the taxpayer’s trade or business during the taxable year incurred. Starting in tax year 2022, R&E costs will need to be capitalized and amortized over a 5-year period for domestic expenses and over a 15-year period for foreign research, beginning with the midpoint of the taxable year in which such expenditures are paid or incurred.

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Increased IRS Scrutiny of Employee Retention Credit

Written by Katherine Johnson, Esq. Updated Apr 19, 2023.

Recently, the Internal Revenue Service (IRS) published its annual Dirty Dozen list, which is intended to raise taxpayer awareness of potential scams and fraudulent tax practices. The list includes cautions against falling prey to scammers calling and texting to pose as IRS or state tax officials, reminding taxpayers that the IRS initiates contact with taxpayers primarily through regular mail and never through email, text, or social media. Additionally, the IRS advised against acting on tax tips posted on social media, noting a couple of specific tax schemes that have recently gone viral amount of tax fraud.

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Bonus Depreciation and the Five-Year Phase Out

Written by Jessie Lewis. Updated Apr 17, 2023.

Cost segregation is the process of identifying property components that are considered "tangible personal property" or "land improvements" under the federal tax code. The primary goal of a cost segregation study is to identify all construction-related costs that can be depreciated over a shorter tax life (typically 5, 7, and 15 years) than the building (39 years for non-residential real property or 27.5 years for residential rental property).

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All or Nothing: Don't Gamble with Your Tax Credit Eligibility

Written by Katherine Johnson, Esq. Updated Apr 11, 2023.

Two recent court opinions – Moore v. Commissioner and Little Sandy Coal v. Commissioner – reiterate the pitfalls of claiming the Research & Development (R&D) Tax Credit without sufficient documentation. In both cases, the courts completely disallowed the taxpayers’ R&D tax credit despite recognition that the taxpayers undertook R&D activities and had some level of R&D expenses. The issue was that the taxpayers did not meet their burden of proof to show that all of the activities and associated expenses qualified, and the taxpayers did not provide a reasonable basis for estimating what portion could be properly included.

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Seventh Circuit Weighs in on Little Sandy Coal – What This Means for R&D Tax Credit

Written by Katherine Johnson, Esq. Updated Apr 6, 2023.

Now more than ever, recent court precedence has created the need to partner with a firm that understands your industry to maximize Research & Development tax credits. This article explains the result of Little Sandy Coal vs. Commissioner and why it’s important to every organization.

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Navigating Section 174 Changes Through Tax Season

Written by Corporate Tax Incentives. Updated Mar 28, 2023.

The Tax Cuts and Jobs Act (TCJA) creates the need to amortize research and experimental expenditures in tax years after December 31, 2021. This article provides an overview of section 174, then dives into the changes, updates, and questions regarding taxpayers and their involvement with Section 174 of the TCJA as of the 2022 tax year.

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Are you a Recovery Startup? Claim Your Tax Savings Now

Written by Stephanie Cornejo. Updated Feb 9, 2023.

It is evident that the COVID-19 Pandemic has changed the way we live and work. It has also created numerous challenges for business owners. From health and safety mandates to logistical problems, the ability to stay profitable has become an issue for many.

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Benefits of the Inflation Reduction Act: More R&D Equals Less Payroll Tax

Written by Corporate Tax Incentives. Updated Dec 22, 2022.

Signed into law by President Biden in August of 2022, the Inflation Reduction Act (IRA) is intended to lower inflation by investing in various areas that will facilitate growth, promote jobs, and strengthen the American economy. 

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