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Manufacturing Tax Tips

Fringe Benefits – Manufacturing Tax Tips
What is a fringe benefit and how does it affect my taxes?
Inventory – Manufacturing Tax Tips
How do I value my inventory?
Excise Taxes – Manufacturing Tax Tips
Manufacturing Companies may be liable for Federal excise taxes or due a credit or refund.
Research and Development – Manufacturing Tax Tips
Can you deduct R&D expenditures as a current business expense?
The expenditures of research and development (“R&D”) are generally capital expenses. However, you can choose to deduct these expenditures as current business expenses.
You may use one of the two following methods of accounting for R&D expenditures:

  • You may deduct your R&D expenditures in the tax year, in which you paid or incurred,
  • You may amortize such expenditures over a period of not less than 60 months

You must charge to a capital account any R&D expenditures that you do not deduct currently, nor defer and amortize.
You may claim the R&D credit against tax for certain qualified R&D expenditures, and combine the credit as one of the components of the general business credit. The R&D credit is a nonrefundable tax credit.
For detail information of R&D expenditures, please select from the following topics:
Current-year Deduction of R&D Expenditures
Amortization of R&D Expenditures

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Tax, Accounting, Consulting - Emil Estafanous, CPA, CFF, CGMA