Enrolled Agent Exam [Part 2] 68, Research and Development Credit (§41)

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Post-2021, §174 R&D costs must be capitalized and amortized over 5 years for domestic research or 15 years for foreign research. - The §41 credit is calculated on Qualified Research Expenses (QREs), such as wages and supplies, but excludes costs like research after commercial production begins. - Claiming the R&D credit requires you to reduce your otherwise allowable deduction for those same research expenses by the amount of the credit. - A Qualified Small Business may elect to use the R&D credit to offset payroll taxes. - To be a Qualified Small Business for the payroll tax offset, the business must have less than $5 million in gross receipts and be in its first five years of having gross receipts. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep