Discussion:R&D Credit - Self Employed T/P
From TaxAlmanac
| Revision as of 19:37, 8 May 2007 Riley2 (Talk | contribs) ← Previous diff |
Current revision JCCPA (Talk | contribs) (Riley2 - Found a) |
||
| Line 13: | Line 13: | ||
| {{ForumReplyPost|UserID=JCCPA|Date=8 May 2007|Text=Thanks Riley2. I have never done any R&D using self-employment earnings as wages - I appreciate your feedback! | {{ForumReplyPost|UserID=JCCPA|Date=8 May 2007|Text=Thanks Riley2. I have never done any R&D using self-employment earnings as wages - I appreciate your feedback! | ||
| + | }} | ||
| + | |||
| + | {{ForumReplyPost|UserID=JCCPA|Date=13 May 2007|Text=Riley2 - Found an interesting software R&D Case - | ||
| + | |||
| + | TAX AND ACCOUNTING SOFTWARE CORPORATION; TIM E. KLOEHR; and SHERYL KLOEHR, Plaintiffs - Appellees, v. UNITED STATES OF AMERICA, Defendant - Appellant. | ||
| + | |||
| + | Summary -- | ||
| + | |||
| + | Plaintiff taxpayers filed a refund suit seeking money allegedly owed them from a tax credit for research and development expenses under I.R.C. § 41. In a matter of first impression in this circuit, we interpret the scope of "qualified research" under I.R.C. § 41, including the requirement in § 41(d)(1) that the taxpayer must intend to "discover[] information" using a "process of experimentation." The district court granted summary judgment to the taxpayers and the government appealed. Our review of this case was abated from January 18, 2002, until May 24, 2002, pursuant to the government's request. We have jurisdiction under 28 U.S.C. § 1291, and we reverse and remand. | ||
| + | |||
| + | |||
| }} | }} | ||
Current revision
Discussion Forum Index --> Tax Questions --> R&D Credit - Self Employed T/P
| 4 May 2007 | |
| I am working on calculating a potential R&D Tax Credit for the current year and prior two years for a client. Client is a self-employed software engineer with many patents regarding his software. This is the first time that I have worked with R&D for a SMLLC filing a Schedule C. In reading through S. 41 and the reference in S. 41(b)(2)(D) to S. 401(c), I interpret the Code to say that net earnings from self employment are considered wages for the R&D Tax Credit. I am wondering if anyone is familiar with this and if my interpretation is on point?
Also - does anyone know of any recent court cases regarding R&D Tax Credits and software? Thanks in advance.... | |
| 5 May 2007 | |
| I believe that your interpretation is correct.
I am not aware of any court decisions on R & D credits on software. However, internal use software that satisifies the criteria set forth in the proposed regs should qualify. See Prop Reg § 1.41-4(c)(6). | |
| 8 May 2007 | |
| Thanks Riley2. I have never done any R&D using self-employment earnings as wages - I appreciate your feedback! | |
| 13 May 2007 | |
| Riley2 - Found an interesting software R&D Case -
TAX AND ACCOUNTING SOFTWARE CORPORATION; TIM E. KLOEHR; and SHERYL KLOEHR, Plaintiffs - Appellees, v. UNITED STATES OF AMERICA, Defendant - Appellant. Summary -- Plaintiff taxpayers filed a refund suit seeking money allegedly owed them from a tax credit for research and development expenses under I.R.C. § 41. In a matter of first impression in this circuit, we interpret the scope of "qualified research" under I.R.C. § 41, including the requirement in § 41(d)(1) that the taxpayer must intend to "discover[] information" using a "process of experimentation." The district court granted summary judgment to the taxpayers and the government appealed. Our review of this case was abated from January 18, 2002, until May 24, 2002, pursuant to the government's request. We have jurisdiction under 28 U.S.C. § 1291, and we reverse and remand. | |
