Surgent's Critical Tax Season Updates: Section 174 Capitalization of Research and Experimentation Costs

Among the massive tax changes in the TCJA bill was a delayed time bomb targeting the 2022 tax year. As taxpayers hold their breath hoping for a fix from Congress, tax preparers need to grapple with the law currently on the books: Section 174 capitalization of research and experimentation (R&E) costs. The change to R&E will have an outsized impact on taxpayers in industries as varied as software development, manufacturing, and financial services, from multi-billion-dollar corporations to mom-and-pop businesses, as there are no small business exceptions. This impact needs to be evaluated and quantified before filing extensions or business tax returns for 2022. This course will equip tax preparers with necessary information to educate their clients and make informed decisions on how to comply with Section 174 requirements.

Major Topics:

Objectives:

• Understand Section 174 amortization and its impact on taxpayers
• Identify Section 174 costs
  
• Be aware of challenges and difficulties for the 2022 tax season

Level: Basic

Instructor: Renata Stasaityte, CPA

CPE Credits: 2

Area of Study:  Taxes (2)

Prerequisite: None