Section 174 Capitalization Study

A capitalization study assesses whether to deduct these costs immediately or to capitalize and amortize them, ensuring compliance with tax regulations while optimizing tax efficiency. It’s a critical tool for businesses navigating the complexities of research expenditures.




Mandatory Capitalization: Comprehend the shift to required capitalization of research costs, impacting tax strategy.

Streamlined Compliance Process

  1. Identify all research expenditures subject to capitalization.
  2. Comply with new Section 174 regulations.
  3. Document for accurate tax reporting.
  4. Assess the impact on tax liabilities.
  5. Strategize to optimize tax positions under the new law.

Adapting for Your Benefit**

  • Compliance Assurance: Navigate the complexities of the new law with confidence.
  • Strategic Insight: Proactive planning to mitigate the impact of capitalization on your taxes.
  • Future Readiness: Stay ahead with ongoing advice as tax laws continue to evolve.