News & Events

Mandatory Capitalization of Research & Development Expenses

May 2022 Tax Update

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.

(more…)

Read more

US Tax Corner

March 2022 Canadian Tax Update
  • US Tax Corner
  • Should you file if you can’t pay?
  • Convention Expenses
  • Computer Consultants
  • No Tax on Investment Income – Are you maxing out your TFSA?

Read more