Comment by codazoda
3 years ago
Specifically, that law firm says...
> Startups unable to utilize the credit under Section 41 should consider whether an amortizable expense under Section 174 or an immediate deduction under Section 162 is more appropriate.
So, their interpretation seems to be that you have three options.
Right. And 'unable to utilize' I think just is about the credit being non-refundable. EG, if are otherwise already showing a loss, then you don't want to use the credit. If you have reportable income, then the R&D credit might be beneficial.
Though, I'm not sure you can split the credit or carry any forward, etc. Every tax situation is different.