2024 Section 174: New Rules for the R&E Deduction

Overview

This program addresses the most recent developments impacting taxpayers incurring research and experimentation costs.  Emphasis will be placed on compliance with the 2022 change in Section 174 Amortization of research and experimental expenditures.

**Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com.

Prerequisites

Basic working knowledge of business taxation

Objectives

• Identify recent changes affecting the deduction of research and experimental expenditures

Highlights

• Impact of the Section 174 law change requiring capitalization of research and experimental costs
• Comparison of the Section 41 R&E credit to the Section 174 R&E deduction
• Financial accounting for R&E costs
• Required change of accounting method and Form 3115
• Revised treatment of software development costs
• Comprehensive case problems explaining implementation of the law changes