How Best to Document the R&D Tax Credits For Your Technology Investments
July 26, 2022
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In this episode of Cherry Bekaert’s Tax Credits & Incentives Advisory Podcast, Martin Karamon welcomes Tax Credits & Incentives Advisory leaders Dan Mennel and Vivian Kohrs to talk about R&D documentation as you make investments in technology or look at the ROI of making such an investment.
The R&D Tax Credit is one of the most lucrative incentives available to taxpayers and provides a permanent offset to tax liabilities. This credit is an activity-based credit – meaning that if a taxpayer is performing specific types of activities, the costs incurred to perform those activities go into a separate tax credit calculation.
As it relates to the R&D Tax Credit, Cherry Bekaert’s Tax Credits & Incentives practice is primarily focused on helping companies identify and document qualifying R&D costs.
Discussion includes:
- Types of investment and the four-part test to determination qualification
- How to properly document support for R&D activities, which may qualify as these types of investments
- Real-life examples of qualified R&D investments
- IRS ASC 730 directive
If you have any questions specific to your business needs, Cherry Bekaert’s Tax Credits & Incentives Advisory team is available to discuss your situation with you.
If you haven’t already, catch up on other podcasts covering the R&D topic:
What’s New with R&D Tax Credits in 2022
Tax Beat: Digital Transformation and R&D Tax Credits
The Benefits of using a CPA Firm to Perform Credits & Incentives Projects