Regarding the tax treatment of a businesss research and experimental (R&E) expenditures, which of the following statements
Question:
Regarding the tax treatment of a business’s research and experimental (R&E) expenditures, which of the following statements is true?
a. A common reason for electing tax deferral for such expenses is the expectation of lower tax rates in the future.
b. Expenses associated with the acquisition of land upon which a purpose-built R&E facility is constructed are considered R&E expenditures for tax purposes.
c. Companies generally prefer to expense R&E costs immediately, but may elect instead to defer and amortize such costs over a minimum of 60 months.
d. Companies may elect to immediately expense R&E costs incurred in the first applicable taxable year and all future years through an appropriate filing with the IRS.
Step by Step Answer:
South Western Federal Taxation Individual Income Taxes 2017
ISBN: 9781305873988
40th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen