Discussion:Research and Experimental Expenditures
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Discussion Forum Index --> Tax Questions --> Research and Experimental Expenditures
| 11 April 2006 | |
| Newly formed S Corp with costs to secure a patent and develop a proto-type (research and experimental expenditures) would like to elect to treat as a current year deduction under IRC section 174(a). Confusion with presentation on 1120S. Welcome insight from someone who has experience with this subject. Thank you. | |
| 24 January 2008 | |
| I am also looking for how to show research and development expenditures on 1120s.
Anyone? | |
Nancyshoemake (talk|edits) said: | 6 April 2008 |
| I have a situation like this also...
Any guidance? | |
Nancyshoemake (talk|edits) said: | 6 April 2008 |
| d & t? kevin5? irsfixer? | |
Taxstudent (talk|edits) said: | 7 April 2008 |
| The Service has maintained the position that all you have to do is deduct the expenses to make the election. There was a revenue ruling in the 1950s that stated this quite explicitly, though it requested that taxpayers show a breakout. If you're also preparing a Form 6765 for the research credit, the instructions request a breakout. If it were me, I would make a reconciliation and put it as a statement under Other Deductions. The reconciliation would show the source of the R&E expenses (e.g. officer comp, salaries, depreciation, etc.). Of course, you'd have to reduce those other lines by the R&E expenses. | |
Nancyshoemake (talk|edits) said: | 7 April 2008 |
| Thank you......this is a new one for me.....just wanted to make sure there isn't something amiss. | |
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