The lasting effects of Section 174 might be greater than anticipated, so it’s best to act early and be prepared. Businesses should consider:
While additional published guidance is needed about the new procedures outlined in Revenue Procedure 2023-8, a streamlined process can help businesses be better prepared.
The confusion around Section 174 should not delay your approach to planning for its impact.
Crowe can work with you to design an approach based on your systems and records and weigh the impacts of your positions against other areas of your tax strategy.
The process of navigating Section 174 is much more than a compliance exercise. If you haven’t yet thought about how to respond to Section 174, many tax planning strategies could fit your situation. It’s time to start thinking about your approach now.
Clean energy tax credits for businesses
Research and development credits
Cost segregation studies
Preparing for the uncertainty around Section 174
No fix for R&D; procedures for method change issued