{"id":2139,"date":"2023-07-24T19:29:22","date_gmt":"2023-07-24T19:29:22","guid":{"rendered":"https:\/\/gtmtax.com\/insight\/oscpa-section-174-what-is-the-impact-and-how-can-it-be-mitigated\/"},"modified":"2025-07-23T20:03:22","modified_gmt":"2025-07-23T20:03:22","slug":"oscpa-section-174-what-is-the-impact-and-how-can-it-be-mitigated","status":"publish","type":"insight","link":"https:\/\/gtmtax.com\/insight\/oscpa-section-174-what-is-the-impact-and-how-can-it-be-mitigated\/","title":{"rendered":"OSCPA: Section 174: What is the Impact, and How Can It Be Mitigated?"},"content":{"rendered":"
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IRC \u00a7174 has been modified, and taxpayers aren’t happy. The new rules now require costs that meet the definition of R&E under \u00a7174 to be accounted for under the rules of \u00a7174. Additionally, all costs incurred in connection with software development, regardless of complexity, use, or intent, must now be treated as \u00a7174 expenses.<\/p>\n

Considering the tax impact of R&E amortization, any way to reduce the tax bill is welcome.<\/p>\n

In their latest article<\/a> for the Ohio Society of CPAs, Jonathan Forman and Michael Bowman explore how to mitigate the negative impact of the new rules, while implementing an improved, automated process to calculate \u00a7174 and 41 costs. They also explain how to use the enhanced credit (and state credits) to help offset the additional tax.<\/p>\n

Read the article here<\/a>.<\/p>\n\n <\/div>\n<\/div><\/div>","protected":false},"template":"","meta":{"_acf_changed":false},"class_list":["post-2139","insight","type-insight","status-publish","hentry"],"acf":[],"yoast_head":"\nOSCPA: Section 174: What is the Impact, and How Can It Be Mitigated?<\/title>\n<meta name=\"description\" content=\"IRC \u00a7174 has been modified, and taxpayers aren't happy. The new rules now require costs that meet the definition of R&E under \u00a7174 to be accounted for under the rules of \u00a7174. 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