- U.S. Treasury Releases Corrections: Foreign Tax Credits
- Employee Stock Options
- The Small Business Deduction
- The General Anti-Avoidance Rule
- Working On Commission? You Can Get More Deductions Than Other Employees
As the cannabis industry continues to evolve, with new product suites, consolidation of companies, and innovation in the production cycle, another innovation in sales is taking the spotlight, dubbed “farmgate.”
Despite lobbying by many Fortune 100 companies and strong bi-partisan support to retain the deductibility of research and development (R&D) costs, 2022 brings an unexpected change for companies in the manufacturing, technology, SaaS, and life sciences industries. Those companies with significant R&D costs, including software development costs, will now be subject to mandatory capitalization, for U.S. tax purposes, as an intangible asset. This can have a significant impact on their 2022 financial statements and cash flows, as they will no longer be allowed to deduct those expenses in the year incurred.