Starting in 2022 the way companies take research and development costs are changing.
Previously businesses were able to fully expense research and development costs in the year incurred.
A delay change from the 2017 tax reform act now requires all research and development costs to be expensed equally over 5 years. If the research takes place outside of the US it is expensed equally over 15 years.
Businesses are pushing congress to delay this change and it is possible they might.
As always our tax plan for business owners or investors bundles this knowledge and MUCH more into account to create your individualized tax plan to be used for YEARS. Feel free to text, email, or call us to see how a tax plan could benefit you.