Research and Development

Business meeting ensuring accurate financial reporting for financial health.

Definition of Amortization of Intangible Assets

Amortization of intangible assets, often simply referred to as amortization, is the systematic process of expensing the cost of an intangible asset over its useful life for tax or accounting purposes. Unlike tangible assets which are written off through depreciation, intangible assets such as patents, trademarks, and goodwill are gradually

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ALT: Small business owners optimizing TaxRobot for compliance and maximum benefits.

R&D Tax Credit Payroll Tax Offset: A Simple Guide

The R&D Tax Credit Payroll Tax Offset is a valuable incentive for small businesses engaged in research and development activities. This guide aims to simplify the understanding of this tax benefit, outlining its definition, eligibility criteria, benefits, and the steps required to claim it. Additionally, we will discuss common pitfalls

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Skilled workers innovate their products and maximize tax benefits with TaxRobot

Breakdown of Section 174: R&D Expenditures

Section 174 of the Internal Revenue Code (IRC) plays a crucial role in defining and managing Research and Development (R&D) expenditures for businesses in the United States. Enacted as part of the Tax Cuts and Jobs Act (TCJA) of 2017, Section 174 requires companies to capitalize and amortize their R&D

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Top R&D Tax Credit Software Of 2024

In the ever-complex realm of financial management, the right tools can spell the difference between seamless efficiency and potential pitfalls. Research and Development (R&D) tax credits remain a pivotal incentive for businesses to innovate and push boundaries. However, with intricate regulations and ever-evolving guidelines, leveraging these credits can be a

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9 Tax Deductions Sole Proprietors Should Know

In 2019, there were 27.8 million non-farm sole proprietorships. If you are one of these, you are probably constantly on the lookout for ways to run your business more efficiently.  That is why tax credits and deductions are so great. They allow your business to save money without fundamentally changing

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Research And Development Grants To Know About

Navigating the landscape of research and development grants can be a daunting task for small businesses and organizations. However, understanding the key federal grants and state-specific opportunities, particularly in New York, can greatly benefit those seeking support for innovative projects. This article sheds light on the most significant grants available,

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What To Know About Tax Compliance for Businesses

Tax compliance for businesses is an essential aspect of running a company responsibly and legally. It involves understanding and adhering to various tax laws and regulations, which can be complex and ever-changing. With the right strategies and planning, businesses can ensure they meet their obligations while minimizing their tax liabilities.

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Why Use an R&D Tax Credit Software?

Unlock the potential of your innovations with R&D Tax Credit Software. Dive into a world where maximizing your tax benefits becomes both a possibility and a streamlined reality. With tools designed to simplify, optimize, and secure your R&D tax credit claims, this software is your key to turning research and

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Top 5 Most Common IRS Audit Triggers

As tax season unfolds, individuals and businesses alike must navigate the complexities of IRS regulations to avoid unwanted scrutiny. With audit rates in flux, understanding the most common triggers for an IRS audit is crucial for ensuring compliance and minimizing the risk of being audited. From large deductions to the

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R&D 4-Part Test Eligibility

The R&D Tax Credit offers a significant financial incentive for businesses engaged in qualifying research and development activities. Understanding the four-part test is crucial to determine eligibility and to ensure compliance with IRS requirements. This article provides insights into the R&D Tax Credit Four-Part Test, outlining the criteria for qualifying

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What’s New In AI Tax Preparation

The landscape of tax preparation is undergoing a significant transformation with the advent of artificial intelligence (AI). As AI continues to evolve, it is reshaping the way individuals and businesses approach tax filing. From the automation of routine tasks to the provision of personalized tax advice, AI tax preparation software

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Getting R&D Tax Credits & Deduction in 2024

The landscape of Research and Development (R&D) tax credits and deductions is constantly evolving, and staying informed about the latest regulations and strategies is crucial for businesses engaged in innovation. As we move into 2024, companies must understand the intricacies of claiming these financial incentives. This article provides a comprehensive

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What To Know About The 179D Tax Deduction

The 179D tax deduction is a significant incentive for promoting energy efficiency in commercial buildings in the United States. Understanding and leveraging this deduction can lead to substantial tax savings for eligible stakeholders. This article will explore the essentials of the 179D deduction, its recent updates, eligibility requirements, and the

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What Questions To Ask Your Clients As A Tax Professional

Welcome to the intricate world of tax preparation, where asking the right questions is as crucial as crunching numbers. For tax professionals, the art of inquiry is essential. Every conversation with a client is an opportunity to gather important details, helping to paint a comprehensive picture of their financial situation.

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Qualified business income deduction Explained

Welcome to the insightful world of tax deductions! Today, we’re exploring the Qualified Business Income Deduction (QBI). It’s a topic buzzing in the business community for all the right reasons. This deduction is a key player in business taxation, offering significant savings for eligible business owners. Understanding how the QBI

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Practice Tax Returns: Sharpening Your Skills

In the meticulous world of tax preparation, the mantra is clear: practice makes perfect. For professionals in the field, mastering the art of tax returns is not just about number crunching; it’s a skill honed through diligent practice. Imagine a scenario where each tax return you prepare becomes easier but

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Qualification for The R&D Tax Credit In Agriculture

In the world of agriculture, innovation is vital to growth and sustainability. R&D tax credits offer a significant financial boost to those who innovate in this vital sector. Understanding the qualifications for these credits can open doors to new advancements and efficiencies for farmers and agricultural businesses. The landscape of

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R&D tax credit for dentists: Qualifications & More

Welcome to the world of R&D tax credits, a financial opportunity often untapped in the dental industry. For dentists, understanding and leveraging this tax credit is essential for advancing practice growth and innovation. It’s not just about financial savings; it’s about recognizing and rewarding the continuous efforts in research and

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Best Tax Preparation Services to Use in 2024

Handling your taxes is difficult and can lead to errors if you are not careful. That is why around 46% of Americans use tax software to file their taxes for them. The convenience, accuracy, and professional help provided by services like these are essential to many.  However, not all tax

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Book vs Tax Depreciation: The Real Difference

In the realm of accounting and tax planning, the concepts of book and tax depreciation often intertwine yet differ fundamentally, impacting financial statements and tax liabilities in distinct ways. Book depreciation, used in financial reporting, follows accounting principles to spread the cost of an asset over its useful life. In

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Innovating in technology and research can get you tax incentives

What are Tax Incentives? Beginner’s Guide for 2024

When your small business is in the startup phase, it’s critical to take advantage of all the US tax incentives that apply to your business. Qualifying for government tax incentives can reduce your tax liability up to 30%. We’ll cover the different tax incentives available and why your business should leverage

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How to Reduce AGI After Year End [2024]

When it comes to your taxes, your AGI is arguably more important than your gross income. After all, your tax burden is not calculated based on your gross income. Instead, the IRS subtracts some adjustments from your gross income to arrive at your adjusted gross income. This is what is

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Accounting Trends To Know for 2024

As an accountant, you know that change is inevitable in your industry. Whether it’s updating tax codes or new disruptive technology, it’s vital to stay on top of the trends in your industry. If you want to learn about the accounting trends in the coming year, you’re in the right

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10 Best Business Funding Sources for 2024

Funding options for your business can seem endless, whether you need short- or long-term financing or if your business is in the startup stage or already established in its industry. That’s why we’ve organized this list of the ten best business funding sources going into 2024 — keep reading to

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How R&D Credits Help With Payroll Taxes [2024]

Income tax time is quickly approaching, and it’s time for everyone to begin thinking of how they can minimize their tax liability. For most businesses, tax time is full of stress, endless paperwork, and long nights spent pouring over the IRS tax instructions. Here at TaxRobot, we want to help

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Using AI In Accounting The Right Way

In the dynamic and ever-changing world of business, the significance of technology in refining and optimizing processes is paramount, especially in the accounting sector. The emergence of Artificial Intelligence (AI) has marked a significant turning point in this area. AI is revolutionizing the way accounting firms function and is significantly

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Internal Use Software In R&D Credit

In the world of technology and business, internal use software (IUS) is emerging as a critical component in research and development (R&D) tax credits, offering a unique tax advantage to medium and large companies seeking to modernize their IT infrastructure. The shift away from legacy systems, which often comprise a

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Best R&D Tax Credit Agencies In Texas

In the quest for maximizing benefits from Research and Development (R&D) tax credits, choosing the right agency is crucial, particularly for businesses in Texas looking to navigate the complexities of tax laws and regulations. Texas, a hub for innovation and business growth, hosts a variety of agencies specializing in R&D

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Deadlines For ERC

Navigating the complexities of the Employee Retention Credit (ERC) can be daunting, especially when it comes to adhering to its critical deadlines. The ERC, a significant relief measure for businesses grappling with the challenges posed by economic disruptions, offers a valuable tax credit to those who qualify. However, the key

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Companies Must Amortize R&D Expenses Beginning in 2022

Starting in tax year 2022, R&D expenses must be amortized over a period of five years instead of deducting the expenses in the year incurred. Any foreign R&D expenses must be amortized over a period of 15 years. The requirement to amortize expenses is independent of the ability to claim

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R&D Credit Payroll Tax Offset

New businesses and startups have the opportunity to utilize the R&D tax credit to reduce their payroll taxes for a period of up to five years. This tax credit was made permanent through the PATH Act of 2015. This act introduced several improvements, including provisions allowing eligible businesses to offset

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Knowing About the R&D Tax Credit Deadline

Research and Development (R&D) tax credits can be claimed for specific types of expenses incurred during your financial year. The government provides these incentives to support innovative businesses that take risks in their pursuit of new ideas. If your company is new to these incentives, you may have missed out

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How To Capitalize R&D: Expert Guide

Taxes and the laws governing them are constantly changing, as made evident in the recent changes to how companies have to handle their R&D costs. Previously, businesses could write off those costs immediately; however, they now must capitalize their R&D costs and view them as assets instead of expenses. Due

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Alternative Simplified Credit For R&D

Understanding and efficiently using R&D tax credits can greatly benefit your business, and the Alternative Simplified Credit (ASC) is one such method that can make this possible. This article delves into the intricacies of ASC.  This method allows a broader range of companies to participate due to its less stringent

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What You Should Know About Amortization Of R&D Expenses

It is important to have an understanding of the complexities surrounding Research and Development (R&D) expenses and their amortization in the evolving business tax environment we have today. Beginning in 2022, new regulations stipulate that these expenses need to be accounted for as assets and spread out over a period

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Documenting R&E Expenses the Right Way This Tax Season

Taxpayers face significant changes in the treatment of research or experimental (R&E) expenditures under Section 174 due to the Tax Cuts and Jobs Act (TCJA). This article explores the implications of the new capitalization rules and provides guidance on documenting R&E expenses accurately for tax purposes. Understanding the Changes The

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Qualifying Expenditures for Research and Development

Businesses have the opportunity to reduce their tax liabilities by determining their qualified research expenses (QREs) and claiming them as a deduction through the federal research and development (R&D) tax credit program. Companies that want to take advantage of this dollar-for-dollar reduction absolutely need to have a solid understanding of

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Breakdown Of R&D Tax Credit Documentation Needed

Claiming the R&D tax credit can be an effective way to reduce your federal tax liability if your business engages in research and development. But in order to do this, you need to support the expenses you are claiming properly. Doing so is critical and mandatory to avoid an issue

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A business owner filling out their 1040 paperwork

Have A Business? Learn How To File Taxes Quarterly

Should you be paying quarterly taxes? If you have a business, whether you do freelance work, are a sole proprietor, or own a corporation, the answer is likely yes. When you run a business, taxes can get tricky quickly — there’s no one paying taxes for you per a W4

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The Best Free Balance Sheet Template

A balance sheet shows your business’s equity at any given time, showing your company’s worth considering its debts and liabilities — essential information for everyone to have on hand. We’ll discuss how a balance sheet works and what type of items your business needs to list and leave you with

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Texas R&D Tax Credit: Find Out If You Qualify

When we mention the R&D tax credit, you might think of the federal program that incentivizes US businesses to improve or develop new products and processes. However, many states also offer this incentive — and Texas approaches it a little differently than others. Texas offers R&D incentives in two different

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Revolutionize Your Accounting With the Best CRMs

Has your accounting firm gone paperless? If so, you’re not alone — businesses worldwide are moving their data into customer relationship management (CRM) platforms to better manage their information and streamline their accounting processes. However, if you’re still relying on paper forms and old-fashioned methods, scaling your accounting business is

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R&D Tax Credits for Software Development: A Comprehensive Guide

Software development is an innovative field; devs transform business operations and create products driving productivity and efficiency across industries. Many don’t know that most software development companies can qualify for the federal R&D tax credit, providing significant saving opportunities for a range of businesses. Most expenses that your software development

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A man wondering if his expenses qualify for the R&D credit

What Expenses Qualify for the R&D Credit?

The R&D credit helps businesses reduce their tax liability based on their qualified research expenses (QREs), but determining which expenses qualify can be confusing. Keep reading to see if your research expenses qualify for the R&D tax credit. What Is the R&D Credit?  The federal R&D tax credit is a

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A small business owner planning for tax season

Small Business Tax Planning: The Do’s and Don’ts

As a small business owner, tax season is never fun. But with better tax planning, you can take advantage of deductions and credits that can help reduce your business’s tax burden. These seven strategies discuss the do’s and don’ts of small business tax planning, so you can keep more of

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R&D vs. R&E: What’s The Difference?

When looking at the tax code, instructions, and other forms, you’ll come across a number of different terms, some of which are easy to understand and some which aren’t. The IRS even knows this as they make an effort to include glossaries and definitions with some of their publications.  Unfortunately,

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Liability: What Are Liabilities in Accounting?

Did you know that the total global debt of non-financial corporations has reached a staggering $87 trillion? However, debt (and any other company’s financial obligations) are okay. The reality is that these liabilities are an essential part of running a business.  But precisely what are liabilities in accounting? Understanding this

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Balance sheet displaying debits and credits

Debits and Credits: Understanding for Accounting

If you’re like most people, the only context you hear debit or credit applied to is at a cash register or bank account. But the reality is that debits and credits are vital to business transactions and the accounting that tracks these transactions.  That’s why they’re both crucial to understanding.

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AI in Accounting: How Accountants Are Leveraging It

Did you know the global AI market is worth an estimated $327 billion? Many people think that AI is only confined to IT applications. But the reality is that the artificial intelligence behemoth has its tentacles in nearly every industry, including accounting.  And the good news is that’s not a

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Accounting Technology: How and Why It’s Changing

Gone are the days when bookkeeping was confined to actual books. These days, like most industries, accounting has turned to technology to streamline efficiency and save costs.  However, the use of accounting technology is constantly changing as new interfaces and advancements are being applied each year. So how is accounting

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