August means a lot of things to different people. For me this year, it is met with mixed emotions. My youngest child, Zachary, now 14 years old, is entering his freshman year of high school. I was fortunate enough to spend much of this summer with him working out and preparing for football. But it also might be the last summer he wants to hang out with "Ol' Dad." I thought of the Days of Our Lives quote "Like sands through the hourglass, so are the days of our lives." Also from the same era was the "Cat's In the Cradle" song by Chapin. Both fitting. Many of my friends and colleagues in industry sent their children off to college this summer. Whatever the case may be for you, I truly hope you were able to spend some quality time doing what you love with those whom you love. Now it's back to school and back to work.
August also means back to work for my CPA colleagues... now just about 30 days away from the September 15th deadlines 60 days away from October 15th deadlines. However, even though this is a short window, it doesn't take much time to be a hero for your clients. In the movie We Bought a Zoo, the character Matt Damon plays exemplifies the motto of only needing 20 seconds of courage. Ask any of my team...I borrow this all the time, "Just give me 20 seconds of courage." Yes, you have a lot of files to close - but I implore you to take the 20 seconds extra to see if your clients could possibly qualify for additional incentives. Did they buy or construct a new building? Are they in any of these industries? Take a look at our CPA Checklist and give me a call or send me a message. It is an opportunity to either be a hero for your client or even sign new clients.
Internal Revenue Code Section 174, which as of 2022 requires taxpayers to amortize certain research and experimentation expenditures over a period of 5 years. On January 31, 2024, the House of Representatives overwhelming passed HR 7024 (votes 357-70). This bill includes a retroactive "fix" for immediate expensing of certain domestic research and experimentation expenditures.
On August 1, 2024, Senator Schumer initiated a procedural vote on HR 7024, which was defeated by a narrow margin of three votes. This outcome does not technically kill the bill. However, practically speaking, it may be considered dormant, as the consensus among many is that it will not be revisited until after the upcoming election. Indeed, there is speculation that a revised version of the bill, excluding retroactivity, might be proposed. Time will tell.
Until there is a fix, Section 174 remains the law, requiring taxpayers with such expenses to amortize them. We offer comprehensive studies for clients regarding Section 174, and we would be pleased to assist you. As the deadlines of September 15 and October 15 are nearing, we urge you to reach out to us at your earliest convenience. For instance, starting this week, our team will implement a cutoff for new work that has a statutory deadline of September 15.
If you would like to connect while we are in any of the above cities and/or would like more information, please reach out to me.
Also, BRAYN will be in Las Vegas hosting events around the AICPA & CIMA Construction & Real Estate Conference from December 9 - 11, 2024, at Caesars Palace, Las Vegas. Let's connect!
Brady is the founder and CEO of BRAYN Consulting LLC, a consulting firm in the US with over 50 employees. Additionally, he is the founder and CEO of HPCE SAS, an Ecuador-based company providing nearshoring solutions to North American businesses. He is also the author of the book "The Millionaires You Went To High School With: Uncommon Wealth from Common People." https://a.co/d/1B9c6lW
Contact Brady Bryan or Follow on Social Media
IRS Circular 230 Disclosure – To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.
CONNECT WITH US