R&D Tax Credits: Maximizing Tax Savings (Currently Unavailable)

Author: Chris Nguyen

Don’t Leave Money on the Table with Unclaimed R&D Tax Credits
The Code Section 41 Research and Development tax credit provides significant bottom-line benefits to taxpayers who take advantage of it. However, many taxpayers are not claiming or are under-claiming the R&D tax credit. This is primarily due to a lack of understanding of how this credit applies and knowing how to maximize the amount of the credit.

In this two-hour CPE course, R&D tax credit expert Chris Nguyen, J.D., will explain how this incentive came about, the details of qualification for the credit, and how to calculate the credit. Mr. Nguyen will share maximization techniques and real-world examples to further your understanding of the R&D credit and how to maximize the dollars saved through it.

This class will also discuss the new law in relation to the AMT and credit utilization as well as start-ups and the real-world implications for the R&D credit.

Publication Date: December 2018

Designed For
CPAs, EAs, return preparers, tax attorneys, other tax professionals, and business owners and managers who actively work to minimize taxpayer tax liabilities and need familiarity with the R&D credit.

Topics Covered

• History and evolution of the R&D credit
• Where the R&D credit is currently with Congress
• Qualification requirements under Code Section 41, including an in-depth explanation of: Qualification under the Four Part Test, Common exceptions and exclusions, Application of the Substantially All and Shrink Back rules, and Funded research analysis (especially important for manufacturers)
• How to calculate the R&D credit, including: Calculating Qualified Research Expenses, Base calculations under the Regular Credit and Alternative Simplified Credit methods, Application and effect of the Sec. 280C reduced credit, and Controlled groups and their effect on the calculation
• Sustaining the R&D credit with the IRS
• Practical examples of real-life situations

Learning Objectives

• Identify taxpayers that can take advantage of the R&D credit
• Recognize what qualifies for the R&D credit
• Describe how to maximize the R&D credit calculation
• Differentiate which congressional acts made the R&D tax credit permanent for the first time
• Recognize correct statements with respect to the AMT exemption and the impacts from the PATH Act of 2015
• Identify the first step in a process of experimentation
• Recognize examples of a hard science based on the 4-part test related to qualified research
• Identify the type of method a taxpayer is always considered unless they do not meet the qualifications
• Describe which cost would be ineligible to be classified as a qualifying activity in the manufacturing industry
• Recognize when the R&D tax credit was first enacted
• Differentiate which R&D type of methods relating to the R&D tax credit has expired
• Identify the amount eligible small business must have gross receipts less than to qualify for an AMT exemption, as a result of the PATH Act
• Differentiate characteristics of the 4-part test
• Identify a common exclusion as it relates to the calculation of the credit
• Recognize for which years is statutorily set at 3 percent, when using the startup base period

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None