R&D credit

Technical topics regarding tax preparation.
#1
Posts:
74
Joined:
21-Apr-2014 2:33pm
Location:
Iowa
Never handled the research & development credit before.

Does the amount of the credit not only act to reduce tax liability, but also reduce expenses?

dr taxes payable. CR. expenses. Amount of r&d cr.

dr taxes expenses. CR taxes payable. Calculated taxes

dr taxes payable. cr. Cash. Payment of taxes net of credits


Thanks
 

#2
Wiles  
Posts:
5053
Joined:
21-Apr-2014 9:42am
Location:
CA
There are no accounting entries related to the credit.

You will need to reduce deductions on tax return and make M-1 adjustments.

If you elect reduced credit, then you aint gotta do nothin.
 


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