Great news for businesses investing in research and development—Dr. Friday explains how R&D expenses can now be deducted much faster than before.
Transcript
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Full expense of domestic R&D cost is fully restored. We were getting it downward like 15 and 20 percent. Businesses can now elect to amortize R&D costs over five years, which to be honest, was over fifteen before.
So this is great because now again, a lot of this money’s coming out—we’re doing these repairs, we’re doing these investments, we’re doing this and we don’t have the cash flow. Normally then we end up having to pay tax on a percentage because we didn’t get to deduct it all.
Now, if you do your taxes right, you can take big chunks of that, spread it over a shorter period of time, put more money in your pocket. That’s what we all love about taxes.
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