Tax in Action: Practical Strategies for Tax Pros

Cracking the R&D Tax Credit Code: Section 41 Explained

Listen Later

The R&D tax credit offers significant tax-saving potential, yet remains misunderstood by many small business owners and their advisors. Jeremy breaks down the key components of the Section 41 credit, explaining qualified research activities, eligible expenses, and calculation methods. Small service-based businesses might qualify more often than they realize, especially when research activities relate to technological innovation, computer science, or engineering processes.

Sponsors
SafeSend - taxshow.promo/safesend


  • (00:00) - Introduction to the R&D Credit
  • (03:00) - Components of the R&D Credit
  • (06:00) - Defining Qualified Research
  • (13:00) - Business Components and the Shrinking Back Rule
  • (20:00) - Non-Qualifying Research Activities
  • (24:00) - Internal Software and the High Threshold of Innovation Test
  • (29:00) - Calculating the R&D Credit
  • (32:00) - Qualifying Wages and Expenses
  • (38:00) - Contract Research Expenses
  • (43:00) - Credit Calculation Methods
  • (49:00) - Payroll Tax Election for Startups
  • (51:00) - Interaction with IRC Section 174
  • (53:00) - Special Rules for Partnerships
  • (56:00) - Common Myths and Final Thoughts

    • Connect with Jeremy
    https://www.linkedin.com/in/jwellstax
    https://www.steadfastbookkeeping.com

    Subscribe on YouTube
    https://www.youtube.com/@TaxinAction

    Earn CPE for Listening to This Podcast
    https://www.earmark.app/

    This podcast is a production of the Earmark Media

    ...more
    View all episodesView all episodes
    Download on the App Store
    Tax in Action: Practical Strategies for Tax ProsBy Jeremy Wells, EA, CPA
    • 5
    • 5
    • 5
    • 5
    • 5

    5

    3 ratings

    More shows like Tax in Action: Practical Strategies for Tax Pros

    View all
    The Accounting Podcast by Blake Oliver & David Leary

    The Accounting Podcast

    340 Listeners

    The Abundant Accountant: Leads, Sales & Business Growth for Accounting, Tax and Bookkeeping Professionals by Michelle Weinstein - The Pitch Queen, Sales Strategist

    The Abundant Accountant: Leads, Sales & Business Growth for Accounting, Tax and Bookkeeping Professionals

    86 Listeners

    The Unique CPA by Randy Crabtree, CPA

    The Unique CPA

    23 Listeners

    Tax Section Odyssey by AICPA & CIMA

    Tax Section Odyssey

    13 Listeners

    Earmark Podcast | Earn Free Accounting CPE by Blake Oliver, CPA

    Earmark Podcast | Earn Free Accounting CPE

    27 Listeners

    Oh My Fraud by Caleb Newquist

    Oh My Fraud

    133 Listeners

    Who's Really the BOSS? by Marcus Dillon, Rachel Dillon

    Who's Really the BOSS?

    11 Listeners

    Federal Tax Updates by Roger Harris, EA and Annie Schwab, CPA

    Federal Tax Updates

    30 Listeners

    Jason On Firms Podcast by Jason Staats

    Jason On Firms Podcast

    54 Listeners

    The Mr. R Show by Chris Picciurro and John Tripolsky

    The Mr. R Show

    0 Listeners

    UnAccountable! by UnAccountable

    UnAccountable!

    28 Listeners

    Unofficial QuickBooks Accountants Podcast by Alicia Katz Pollock, MAT

    Unofficial QuickBooks Accountants Podcast

    42 Listeners

    Diary of a Tax Practice Owner by Jamie Gruol & Jessica Smith

    Diary of a Tax Practice Owner

    8 Listeners

    The Enrolled Agent Advocate by National Association of Enrolled Agents

    The Enrolled Agent Advocate

    13 Listeners

    She Counts by Questian Telka, EA & Nancy McClelland, CPA

    She Counts

    10 Listeners