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The Practice Management Knowledge Community (PMKC) identifies and develops information on the business of architecture for use by the profession to maintain and improve the quality of the professional and business environment.  The PMKC initiates programs, provides content and serves as a resource to other knowledge communities, and acts as experts on AIA Institute programs and policies that pertain to a wide variety of business practices and trends.

    

  • 1.  Reseach and development tax credits

    Posted 12-30-2016 06:19 PM

    Could anyone who has taken advantage of this tax credit share your approach? I have long heard from the AIA that this is a great benefit for architects but after reading through the criteria I am not quite sure how to attack this. What sort of research qualifies, what sort of documentation do I need? For example is delving into how to build a 5 story with basement building out of wood qualified research or is it something more esoteric?

    Any insight would be appreciated!

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    Nea Poole AIA
    Principal
    Poole & Poole Architecture, LLC
    Midlothian VA
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  • 2.  RE: Reseach and development tax credits

    Posted 01-03-2017 04:03 PM

    Our firm took advantage of Welsh Advisors here in California. We are an S-Corp, so the firm profits and tax benefits pass on to the owner personally. Contact Jeff Johnson for more info. jjohnson@welshadvisors.com

     

    Betsy Nickless, SDA/CDFA

    Business Manager
    SDA National Past President
    Canstruction    ® Orange County Co-Chair

    MARK SCHEURER ARCHITECT

    20250 Acacia Street, Suite 260

    Newport Beach, CA 92660

    949•483-8688

    BetsyN@msa-arch.com

     

    MSA LOGO Iconimage012.png@01D1C650.E57FB410 image013.jpg@01D1C650.E57FB410 image014.jpg@01D1C650.E57FB410Twitter-pink                                                                                                                

     




    Original Message


  • 3.  RE: Reseach and development tax credits

    Posted 01-04-2017 01:35 PM

    Nea,

    We have used this tool to claim credit for the R&D work.  Applicable work is loosely defined in the regulations and any novel project approach, materials investigation, etc. can be claimed.  We at Page chose to use an advisor for the paperwork because of the potential need to re-file taxes should the credit be denied or modified.  The total burden for the advisor and internal support added up to about 30% of the net credit.  Note that this is a tax credit and is subject to AMT adjustments or elimination (but it is also available to carry forward should you not be in a position to use the full credit in a single year). 

    There certainly are easier tax strategies to consider, but the R&D credit can certainly be worthwhile if your circumstances align.

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    Thomas McCarthy AIA
    Senior Principal
    Page

    Original Message