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Its Grisha


Total Posts: 91
Joined: Nov 2019
 
Posted: 2021-05-04 02:24
Any of you running small shops claim this in the US? I know our business isn't exactly curing cancer, but seems to check the boxes.

Before you tell me to hire an expert: I will, just want to know if I'm wasting my time here.

informative link:
www.mossadams.com/articles/2021/03/company-qualifications-for-the-r-d-tax-credit

"Nothing is more dangerous to the adventurous spirit within a man than a secure future."

chiral3
Founding Member

Total Posts: 5221
Joined: Mar 2004
 
Posted: 2021-05-04 16:47
Yes. I've been doing this for several years, probably since about 2015. The majority of what gets included are the $hours spent on dev provided it was deployed. It's been beneficial.

Nonius is Satoshi Nakamoto. 物の哀れ

Its Grisha


Total Posts: 91
Joined: Nov 2019
 
Posted: 2021-05-04 20:30
@chiral3 Thanks for the info! Exactly what I wanted to hear.

"Nothing is more dangerous to the adventurous spirit within a man than a secure future."

deeds


Total Posts: 516
Joined: Dec 2008
 
Posted: 2021-05-05 11:44
@chiral - hope you don't mind a question (understand it's not tax advice)

As i understand it only money spent qualifies - so if hours are included, cash needs to be paid to the resources doing the work...can't take an 'opportunity cost' approach, e.g. 'i turned away paid work to focus on this research, so i'll charge those hours to research at foregone' is not allowed...is that consistent with your understanding?

chiral3
Founding Member

Total Posts: 5221
Joined: Mar 2004
 
Posted: 2021-05-05 12:45
So the way I've done this with my tax people is I've identified projects through the year - typically quant dev supporting trading, modeling, etc. but occasionally other things - and the associated hours worked on a particular project mapped against the comp for those employees. Typically these are MSc/PhD level people with job descriptions that explicitly require coding/strat/math/devops and projects that were r&d that were actually deployed for business reasons. I think doing it like this is why I've always generated a credit. I've included software / hardware costs to a certain extent that were required to support the r&d but, for me personally, the bulk has primarily been the FTE hours most years.

Nonius is Satoshi Nakamoto. 物の哀れ

deeds


Total Posts: 516
Joined: Dec 2008
 
Posted: 2021-05-05 13:44
thank you
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