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:
Sent: 12-30-2016 18:18
From: Nea Poole
Subject: Reseach and development tax credits
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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