Dental Boardroom Podcast EP63 - R&D Tax Credit for
Is a salesperson trying to talk you into claiming an R&D tax credit for your dental office?
It can be tempting to trust a pitch like this and leverage research and development to reduce your tax liability.
But how do you satisfy IRS criteria for the R&D tax credit? What documentation do you need? And what happens if you get audited?
Andre Shevchuck serves as Partner at BPM, one of the country’s top 20 accounting and advisory firms.
Andre oversees the Specialized Tax Services Practice at BPM, helping clients identify, document and defend their R&D tax credit claims.
On this episode of the Dental Board Room Podcast, Andre joins host Wes Read to discuss the four criteria for claiming the R&D tax credit and explain how it’s calculated.
Andre describes what the IRS can do to discredit a claim, challenging dentists to exercise caution before you let a salesperson talk you into taking the R&D tax credit.
Listen in for insight on mitigating your tax liability without abusing the system and learn when it’s appropriate to claim the R&D tax credit for your dental practice—and when it isn’t!
Topics Covered
Andre’s expertise in specialized tax services and representing clients against the IRS
The 4 criteria for a business owner to claim the R&D tax credit
Why demonstrating technical uncertainty is key in qualifying for the R&D tax credit
How salespeople downplay the risk of claiming the R&D tax credit if you don’t meet all 4 criteriaWhat the IRS can do to discredit an R&D tax credit claim
How your entity structure impacts your risk of being audited for an R&D tax credit
How the R&D tax credit is calculated
How the R&D tax credit allows for a deduction and tax credit on the same expenses
How the 2017 Tax Cuts and Jobs Act adversely affects business owners who want to start claiming the R&D tax credit
Why aggressive salespeople aren’t necessarily on the hook if the IRS revokes your R&D tax credit
Capitalizing R&D work vs. claiming it as an expense on your taxes
How to be aggressive on taxes for your practice without the abusing the system
Connect with Andre Shevchuck
Andre at BPM
Andre on LinkedIn
Connect with Wes Read & Drew Phillips
Practice Orbit
Email wes@practiceorbit.com or drew@practiceorbit.com
Practice CFO
Practice CFO on Instagram
Practice CFO on Facebook
Practice CFO on YouTube
Resources
Amortizing R&D Expenses Under the TCJA
Employee Retention Credit
Excerpt
Is a salesperson trying to talk you into claiming an R&D tax credit? It’s tempting to trust a pitch like this and leverage research and development to reduce your tax liability. Listen in as Andre Shevchuck explains when it’s appropriate to claim the R&D tax credit for your dental practice—and when it isn’t!
Email Promo Guest
Is a salesperson trying to talk you into claiming an R&D tax credit?
It can be tempting to trust a pitch like this and leverage research and development to reduce your tax liability.
But how do you satisfy the IRS’s criteria for the R&D tax credit? What documentation do you need? And what happens if you get audited?
On the latest episode of the Dental Board Room Podcast, I sit down with host Wes Read to discuss the four criteria for claiming the R&D tax credit and explain how it’s calculated.
I describe what the IRS can do to discredit a claim, challenging business owners to exercise caution before you let a salesperson talk you into taking the R&D tax credit.
Listen in for insight on mitigating your tax liability without abusing the system and learn when it’s appropriate to claim the R&D tax credit for your business—and when it isn’t!
Social Blurbs Guest
Twitter –
Enjoyed the opportunity to discuss the #R&D #taxcredit on the #DentalBoardRoom #Podcast! Listen in on my conversation with Wes Read and learn how to identify, document and defend your R&D tax credit claims.
Other Platforms –
Honored to sit down with host Wes Read @PracticeCFO on the #DentalBoardRoom #Podcast! Listen in as we discuss the 4 criteria for the #R&D #taxcredit and learn how to document your claim in a way that satisfies the IRS.
Social Blurbs Host
Twitter –
Is a salesperson trying to talk you into claiming an #R&D #taxcredit? Listen in as Andre Shevchuck @BPMCPA explains when it’s appropriate to claim the R&D tax credit for your #dentalpractice—and when it isn’t! #DentalBoardRoom #Podcast
Other Platforms –
Is a salesperson trying to talk you into claiming an #R&D #taxcredit? It’s tempting to trust a pitch like this and leverage research and development to reduce your tax liability. Listen in as Andre Shevchuck @bpmllp explains when it’s appropriate to claim the R&D tax credit for your #dentalpractice—and when it isn’t! #DentalBoardRoom #Podcast
Email Promo Host
Is a salesperson trying to talk you into claiming an R&D tax credit for your dental office?
It can be tempting to trust a pitch like this and leverage research and development to reduce your tax liability.
But how do you satisfy the IRS’s criteria for the R&D tax credit? What documentation do you need? And what happens if you get audited?
On the latest episode of the Dental Board Room Podcast, Andre Shevchuck, Partner at BPM, joins us to discuss the four criteria for claiming the R&D tax credit and explain how it’s calculated.
Andre describes what the IRS can do to discredit a claim, challenging dentists to exercise caution before you let a salesperson talk you into taking the R&D tax credit.
Listen in for insight on mitigating your tax liability without abusing the system and learn when it’s appropriate to claim the R&D tax credit for your dental practice—and when it isn’t!
Quotes
Andre—
“When you're attempting to develop or improve your business component, there has to be an element of technical uncertainty or challenges that you're faced with in regards to your capability or the method you're going to use to find the most appropriate design to achieve your goal.”
“[The R&D tax credit] is one of the least black and white areas in the tax code. It's so gray as to interpret how these rules apply to what you're doing … and that was intentional. It was meant to be vague this way, so that it wasn't limited to one specific industry.”
“I can say for certain that the IRS environment is very, very contentious around the R&D credit.”
“If you are to be examined, the IRS has a lot of tools in their bag to discredit your claim. And one of those is just the documentation requirements. You have to have substantial documentation to support your credit claim and showcase that you meet this four-part test criteria and that your activities were, in fact, valid.”
“The person who sold you the R&D tax credit could say, ‘Well, if you don't have the documentation, then you're not able to eligible to sustain this credit,’ and they'll kind of throw their hands up. There's not a lot of recourse on their end, and I think that they know that.”
Wes—
“It's not black and white. There's so much interpretability on the rules around the research and development tax credit.”
“Good tax planning isn't a single solution. It's a wide net that's cast across all of these areas that, in the aggregate, save a tremendous amount in taxes.”