{"id":13586,"date":"2024-07-23T18:55:01","date_gmt":"2024-07-23T18:55:01","guid":{"rendered":"https:\/\/taxops.com\/?p=13586"},"modified":"2024-07-23T18:56:11","modified_gmt":"2024-07-23T18:56:11","slug":"section-174-rd-capitalization-requirements-cpe","status":"publish","type":"post","link":"https:\/\/taxops.com\/section-174-rd-capitalization-requirements-cpe\/","title":{"rendered":"Section 174 R&#038;D Capitalization Requirements CPE"},"content":{"rendered":"\n<div style=\"height:35px\" 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=\"536\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Section-174-RD-Capitalization-Requirements-CPE-1024x536.png\" alt=\"\" class=\"wp-image-13589 lazyload\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Section-174-RD-Capitalization-Requirements-CPE-1024x536.png 1024w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Section-174-RD-Capitalization-Requirements-CPE-980x513.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Section-174-RD-Capitalization-Requirements-CPE-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><noscript><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Section-174-RD-Capitalization-Requirements-CPE-1024x536.png\" alt=\"\" class=\"wp-image-13589 lazyload\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Section-174-RD-Capitalization-Requirements-CPE-1024x536.png 1024w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Section-174-RD-Capitalization-Requirements-CPE-980x513.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Section-174-RD-Capitalization-Requirements-CPE-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/noscript><\/figure>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Join Jamie Overberg, partner at TaxOps Minimization, and Thomas Zavieh, partner at Frazier &amp; Deeter, as they discuss recent IRS guidance regarding Section 174 R&amp;D capitalization and key items to consider by counsel and taxpayers. Learn the revised capitalization requirements, how to identify assets, make automatic method change under Rev. Proc. 2024-9, and other key issues.  <\/em><\/p>\n\n\n\n<div style=\"height:66px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"> Section 174 R&amp;D Capitalization Requirements: New IRS Guidance, Rev. Proc. 2024-9, Identifying Assets, and More<\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\"><strong>Thursday, August 15, 2024 | 11:00 &#8211; 12:50 am MT | 1:00 &#8211; 2:50 pm ET  <\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\">A live 110-minute CPE webinar with interactive Q&amp;A<\/h3>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.straffordpub.com\/products\/section-174-randd-capitalization-requirements-new-irs-guidance-rev-proc-2024-12-identifying-assets-and-more-2024-08-15\">Register<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:66px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">This CLE\/CPE webinar will discuss recent IRS guidance regarding Section 174 R&amp;D capitalization and key items that must be considered by counsel and taxpayers. The panel will discuss the revised capitalization requirements, identifying assets, making the automatic method change under Rev. Proc. 2024-9, and other key issues.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Description<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Section 174 requires costs to be capitalized and amortized over five years if they are domestic expenses or 15 years if foreign. The amendment to Section 174 has raised a number of concerns for U.S. taxpayers with&nbsp;<strong>recent proposed legislation being released specifically aimed at R&amp;D expensing<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under Section 174, related expenses are charged to a capital account and give rise to basis. However, you must first define and identify the assets connected to such expenditures. Section 1.174-2 states that &#8220;&#8230;expenditures incurred in connection with the taxpayer&#8217;s trade or business which represent research and development costs in the experimental or laboratory sense&#8230; . Whether expenditures qualify as research or experimental expenditures depends on the nature of the activity to which the expenditures relate, not the nature of the product or improvement being developed&#8230; .&#8221; In addition,&nbsp;<strong>what is considered to be qualifying assets under the rule is very broad and hinges on the nature of the activity<\/strong>&nbsp;in which the asset is used.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The current requirements under Section 174 will cause businesses to recognize significant income due to the change. The IRS released Revenue Procedure 2023-11 to&nbsp;<strong>facilitate the change in accounting method and offer some relief for late transitions<\/strong>, which has since been replaced by Revenue Procedure 2024-9. Practitioners working with companies engaging in research and experimental activities need to understand the R&amp;D requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Listen as our panel discusses the revised capitalization requirements, identifying assets, making the automatic method change under Rev. Proc. 2024-9, and other key issues.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Outline<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Section 174 legislation update<\/li>\n\n\n\n<li>R&amp;D costs<\/li>\n\n\n\n<li>Implementing Section 174 capitalization requirements<\/li>\n\n\n\n<li>Best practices<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Benefits<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The panel will cover these and other key issues:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What costs are included in the definition of R&amp;D?<\/li>\n\n\n\n<li>What issues are presented when implementing Section 174 capitalization requirements?<\/li>\n\n\n\n<li>What is the impact on taxable dispositions, reporting, and planning?<\/li>\n\n\n\n<li>How are capitalized expenses treated if the assets are transferred tax free?<\/li>\n<\/ul>\n\n\n\n<div style=\"height:59px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">About the Presenters<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.taxops.com\/team\/jamie-overberg\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Jamie Overberg<\/strong><\/a><br>Partner<br>TaxOps Minimization<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a tax partner for TaxOps Minimization, Ms. Overberg specializes in executing and managing a wide range of tax minimization strategies, including all aspects of the Research and Development tax credit as well as financial reporting requirements under FAS 109 and Fin 48. In addition, she works with Section 199, Section 263A, and Section 382 analysis, calculations, and reporting. She works primarily with clients in the automotive, engineering, manufacturing, software, biotech and oil and gas sectors, and has worked on numerous R&amp;D tax controversy engagements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.frazierdeeter.com\/people\/tommy-zavieh\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Thomas Zavieh, CPA, MST, MBA<\/strong><\/a><br>National Practice Leader of Credits &amp; Incentives, Tax Partner<br>Frazier &amp; Deeter<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Mr. Zavieh has over 25 years of professional consulting experience as a Tax Partner and the National Practice Leader of Credits &amp; Incentives at Frazier &amp; Deeter, where he addresses complex business and tax needs. <\/p>\n\n\n\n<div style=\"height:59px\" 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\">Let&#8217;s Talk Tax<\/a><\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"block-2666d1fd-3ba5-44f9-9633-31908556df8a\">More Tax News<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/taxops.com\/us-state-and-local-tax-for-foreign-companies\/\">U.S. State and Local Tax for Foreign Companies<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/texas-supreme-court-opinion-clarifies-service-receipt-apportionment\/\">Texas High Court Clarifies Service Receipt Apportionment<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/california-issues-guidance-on-sourcing-service-receipts\/\">California Issues Guidance on Sourcing Service Receipts<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/ethics-in-business-awards-sponsor\/\">Ethics in Business Awards Sponsor<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/how-tos-for-partnerships-and-s-corporations-in-colorado-2\/\">State Legislatures Move on Tax Reform and Relief<\/a><\/li>\n<\/ul>\n\n\n\n<div style=\"height:53px\" 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\n\n\n<div style=\"height:53px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Jamie Overberg, partner at TaxOps Minimization, and Thomas Zavieh, partner at Frazier &amp; Deeter, as they discuss recent IRS guidance regarding Section 174 R&amp;D capitalization and key items to consider by counsel and taxpayers. Learn the revised capitalization requirements, how to identify assets, make automatic method change under Rev. Proc. 2024-9, and other key [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":13589,"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":[225,229,226],"tags":[252,284,12,126,265,827,18,19,30,101,80],"class_list":["post-13586","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-events","category-state-and-local","category-tax-news","tag-accountant","tag-cfo","tag-colorado","tag-cpa","tag-finance-professional","tag-national-association-of-state-bar-tax-sections","tag-sales-and-use-tax","tag-sales-tax","tag-state-and-local-tax","tag-state-tax","tag-tax-provider"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2024\/07\/Section-174-RD-Capitalization-Requirements-CPE.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/13586","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=13586"}],"version-history":[{"count":5,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/13586\/revisions"}],"predecessor-version":[{"id":13594,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/13586\/revisions\/13594"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/13589"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=13586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=13586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=13586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}