Section 174 of the Internal Revenue Code
Section 174 of the Internal Revenue Code allows businesses to deduct research and experimental expenses. However, we do not currently offer section 174 analyses for our clients. Instead, we have found that it is more advantageous for our clients to have an in-house CPA or tax preparer handle this analysis for them.
Having an in-house expert who is knowledgeable about your specific business operations and expenses can provide a more accurate and comprehensive analysis of your research and experimental expenses. They will have a deeper understanding of your company's goals and objectives, allowing them to effectively identify and document eligible expenses.
While we do not directly complete section 174 analyses for clients, we are more than willing to support your tax preparer or in-house CPA throughout the process. Our team can provide guidance and assistance to ensure that you have the correct documentation and necessary information for the analysis. This collaborative approach ensures that your analysis is conducted smoothly and accurately, maximizing your potential deductions and minimizing any potential risks.
By working together with your in-house CPA or tax preparer, we can help streamline the process and ensure that you are taking full advantage of the deductions available to you under section 174. Rest assured that our expertise and guidance will help your tax preparer navigate the complexities of the analysis, ultimately benefiting your business and optimizing your tax strategy.