How the Research & Experimentation Tax Credits May Benefit Your Business

stock vector research magnifying glass over background with different association terms vector illustration 74123767The Credit for Increasing Research Activities, also known as the Research & Experimentation (R&E) tax credit, is one of the most prominent federal tax credits available to businesses.The purpose of the Credit for Increasing Research Activities is to invest in research that leads to new ideas, discoveries, and knowledge that will help to support a growing economy. In particular, the purpose of the R&E tax credit is to increase investment in research and experimentation activities. In my opinion, it is one of the most valuable federal tax credits that can be obtained. It has been claimed by a significant number of companies, ranging from small software startups, to multinational pharmaceutical firms, and many in between.

The R&E credit was initially introduced in 1981, and temporarily extended 16 times before becoming permanent  under the Protecting Americans from Tax Hikes (“PATH”) act of 2015

 

Continue reading
76 Hits
0 Comments

Business Driving Deductions: A Fork in the Road – Compare Actual Expenses with Flat-Rate Method

Did you use your vehicle for business driving in 2016? Generally, you can deduct expenses on your tax return in one of two ways: the actual expense method or the IRS-approved standard mileage rate. Here is a brief comparison:

Continue reading
398 Hits
0 Comments

IRS Maps Out New Per Diem Rates - Approved Method for Business Travel

The IRS pays close attention to deductions claimed for business travel expenses. Both employers and employees must meet strict recordkeeping requirements or face the consequences. Fortunately, you can obtain some relief by using IRS-approved per diem allowances in lieu of accounting for every expense. Now the IRS has updated its per diem rates for business travelers in the government’s 2017 fiscal year.

Continue reading
599 Hits
0 Comments