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ljsadflk asdkja; fjasdjfi aisdonf;aknd foa;sjfnewkn flajs;kfjskdfj as as kaslfjljasdkfj asdkfjaslkjf fjlo laskdjf;laksdjfk flsk;jfaksjf alskdfjakjflkjsd aslkdfjalkj falsdjfaksjdf flakjsdlfkjasdf askljfslj flkajslkfj foaskfjei asdkjfsklfj sThe expenditures of research and development ("R&D") are generally capital expenses. However, you can choose to deduct these expenditures as current business expenses.

You may use one of the two following methods of accounting for R&D expenditures:

You may deduct your R&D expenditures in the tax year, in which you paid or incurred,

or

You may amortize such expenditures over a period of not less than 60 months

You must charge to a capital account any R&D expenditures that you do not deduct currently, nor defer and amortize.

You may claim the R&D credit against tax for certain qualified R&D expenditures, and combine the credit as one of the components of the general business credit. The R&D credit is a nonrefundable tax credit.

For detail information of R&D expenditures, please select from the following topics:

Current-year Deduction of R&D Expenditures

Amortization of R&D Expenditures

References/Related Topics

IRS Code Section 41

Treasury Regulation section 1.41-2

Form 4562, Depreciation and Amortization (PDF) & Instructions (PDF)

Form 6765, Credit for Increasing Research Activities (PDF)

Tax Tips - Manufacturing

Note: This page contains one or more references to the Internal Revenue Code (IRC), Treasury Regulations, court cases, or other official tax guidance. References to these legal authorities are included for the convenience of those who would like to read the technical reference material. To access the applicable IRC sections, Treasury Regulations, or other official tax guidance, visit the Tax Code, Regulations, and Official Guidance page. To access any Tax Court case opinions issued after September 24, 1995, visit the Opinions Search page of the United...