Is This Your Situation: Keeping Track of Inventory
Let’s start with the basics of the processes in a manufacturing setting. Whether your company is building something large, such as a car, or something small, such as a toy car, every piece of material needed to make these items must be accounted for, as do the hours it takes to build the product. To […]
Can You Take Advantage of the Research and Development Tax Credit?
Many manufacturing companies fail to take advantage of the generous research and development (R&D) tax credit simply because they don’t have staff working in a lab. The Internal Revenue Service’s (IRS) definition of R&D is codified at Internal Revenue Code Section 41 and its related regulations — and it may not be exactly what you […]
ACCOUNTING METHOD CHANGES: CASH METHOD OF ACCOUNTING AND EXPENSING OF INVENTORY
Among the many significant changes made by the Tax Cuts & Jobs Act of 2017 (TCJA) were several accounting method changes available for qualifying businesses. Two key changes include the expansion of the availability of the cash method of accounting for tax purposes and the immediate expensing of certain inventory costs. Cash Method of Accounting […]
TAKING ADVANTAGE OF THE RESEARCH CREDIT (PART 4)
In this part of our series on the credit for increasing research activities (research credit), we’ll take a look at how to claim the credit. (For previous articles in this series: Click here for Part 1, discussing what constitutes qualified research. Click here for Part 2, discussing the type of expenses which qualify for the […]
TAKING ADVANTAGE OF THE RESEARCH CREDIT (PART 3)
In this part of our series on the credit for increasing research activities (research credit), we’ll take a look at how the credit is calculated. (For previous articles in this series: Click here for Part 1, discussing what constitutes qualified research. Click here for Part 2, discussing the type of expenses which qualify for the […]
TAKING ADVANTAGE OF THE RESEARCH CREDIT (PART 2)
In this part of our series on the credit for increasing research activities (research credit), we’ll take a look at the type of expenses which qualify for the credit. (For Part 1 of this series discussing what constitutes qualified research, click here.) Qualified Research Expenses In order to qualify for the research credit, an expense […]
