{"id":11197,"date":"2022-11-29T16:59:26","date_gmt":"2022-11-29T16:59:26","guid":{"rendered":"https:\/\/taxops.com\/?p=11197"},"modified":"2022-12-13T22:15:26","modified_gmt":"2022-12-13T22:15:26","slug":"the-unsettled-state-of-174-capitalization","status":"publish","type":"post","link":"https:\/\/taxops.com\/the-unsettled-state-of-174-capitalization\/","title":{"rendered":"The (Unsettled) State of \u00a7174 Capitalization"},"content":{"rendered":"\n<div style=\"height:42px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"577\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-1024x577.png\" alt=\"\" class=\"wp-image-11257 lazyload\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-1024x577.png 1024w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-300x169.png 300w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-768x433.png 768w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-1536x865.png 1536w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-1080x608.png 1080w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-1280x721.png 1280w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-980x552.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-480x270.png 480w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1.png 1640w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><noscript><img decoding=\"async\" width=\"1024\" height=\"577\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-1024x577.png\" alt=\"\" class=\"wp-image-11257 lazyload\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-1024x577.png 1024w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-300x169.png 300w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-768x433.png 768w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-1536x865.png 1536w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-1080x608.png 1080w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-1280x721.png 1280w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-980x552.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1-480x270.png 480w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1.png 1640w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/noscript><\/figure>\n\n\n\n<div style=\"height:42px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>Both houses of the U.S. Congress continue to dance around the idea of reversing provisions in the Tax Cuts and Jobs Act (TCJA) Section 13206 amended section 174 that require companies to immediately amortize research and experimental (R&amp;E) expenditures.<\/em><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Both houses of the U.S. Congress continue to dance around the idea of reversing provisions in the Tax Cuts and Jobs Act (TCJA) Section 13206 amended section 174 that require companies to immediately amortize research and experimental (R&amp;E) expenditures. Since our last report earlier in the year, little progress has been made.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Congress has consistently introduced legislation that would reverse the capitalization component of 174(a) as written in TCJA. Under TCJA, beginning January 1, 2022, all companies \u2014 from multi-billion-dollar corporations to small business owners \u2014 began capitalizing section 174 expenses, spreading the amortization of those expenses over five years (or 15 years for foreign expenses). These changes hit first quarter estimates.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, while Congress\u2019 intent to reserve this amortization provision is clear, the law is not. Business taxpayers must continue to follow the letter of the law and amortize R&amp;E expenses until the law is changed. Refer to the following for the current state of 174 capitalization and contact your TaxOps Min advisor with further questions.<\/p>\n\n\n\n<div style=\"height:54px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/taxops.com\/major-changes-in-%c2%a7174-amortization-hit-q1-estimates-in-2022\/\">Major Changes in \u00a7174 Amortization Hit Q1 Estimates in 2022<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/jamie-overberg-letter-to-irs-requesting-guidance-on-section-174a\/\">Jamie Overberg Letter to IRS Requesting Guidance on Section 174(a)<\/a><\/li>\n<\/ul>\n\n\n\n<div style=\"height:54px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">Let&#8217;s talk tax<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:54px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">More Tax News<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/taxops.com\/connecting-to-your-clients-with-stacey-roberts\/\">Connecting to Your Clients With Stacey Roberts<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/research-and-development-credits-cpe-2\/\">A Practical Approach to ASC 740 CPE<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/research-and-development-credits-cpe\/\">Research and Development Credits CPE: Into the Weeds on Lucrative Credits<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/uncovering-mysteries-of-use-tax-cpe\/\">Uncovering the Mysteries of Use Tax CPE: Use Tax Accrual, Validation, and Compliance<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/retailer-sales-tax-challenges-and-compliance-cpe\/\">Retailer Sales Tax Challenges and Compliance CPE: Navigating State Nexus Rules, Market Facilitator Laws, and Reporting<\/a><\/li>\n<\/ul>\n\n\n\n<div style=\"height:54px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/#subscribe\" target=\"_blank\" rel=\"noreferrer noopener\">Subscribe to Tax News<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Both houses of the U.S. Congress continue to dance around the idea of reversing provisions in the Tax Cuts and Jobs Act (TCJA) Section 13206 amended section 174 that require companies to immediately amortize research and experimental (R&amp;E) expenditures. Both houses of the U.S. Congress continue to dance around the idea of reversing provisions in [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":11257,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","spt_transcript":"","footnotes":""},"categories":[78,226],"tags":[825,782,781,823,778,459,265,824,48,822,49,50,563,783],"class_list":["post-11197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-savings","category-tax-news","tag-825","tag-accounting-professional","tag-aicpa","tag-amortization","tag-capitalization","tag-expenses","tag-finance-professional","tag-law","tag-rd","tag-rd-expenses","tag-research-and-development","tag-research-credit","tag-research-expenses","tag-section-174"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2022\/12\/Unsettled-State-of-\u00a7174-Amortization-1.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/11197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/comments?post=11197"}],"version-history":[{"count":7,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/11197\/revisions"}],"predecessor-version":[{"id":11258,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/11197\/revisions\/11258"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/11257"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=11197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=11197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=11197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}