Business Tax Quarterly Executive Summary

In this issue we address two business matters that deserve further investigation. The research and development tax credit, and, separately, cryptocurrency, both of which are frequently misunderstood. Businesses with the wrong information, on either front, risk tax exposure or potentially leaving dollars on the table.

The R&D tax credit is a dollar-for-dollar income tax benefit that has existed since 1981, but businesses often assume it applies only to the technology sector. Manufacturing and financial services companies, however, also qualify, as can startups with little or no revenues. Now that tax law has made the credit a permanent part of the code, businesses across industries should take time to learn about this important, but little-understood, tax benefit.

Regarding cryptocurrency, the boom and bust of 2017-2018 left many to assume bitcoin was mere hype. Yet it recently reached a 15-month high, this time with greater backing from institutional investors. Major multinational companies, as well as federal agencies, are also getting onboard, and the IRS is scrutinizing filings of the last cycle’s winners. Those seeking to profit in the current upturn should be informed of several missteps to avoid so the appropriate tax treatment is applied.

Business Tax Quarterly - Summer 2019

• Business Tax Quarterly Executive Summary - Summer 2019
• Three Biggest Surprises of the R&D Tax Credit
• Two Big Missteps of Previous Cryptocurrency Winners
• Business Tax Quarterly Suggested Readings - Summer 2019