Skip to content

Manufacturing Tax Tips

Fringe Benefits – Manufacturing Tax Tips
What is a fringe benefit and how does it affect my taxes?

Inventory – Manufacturing Tax Tips
How do I value my inventory?

Excise Taxes – Manufacturing Tax Tips
Manufacturing Companies may be liable for Federal excise taxes or due a credit or refund.

Research and Development – Manufacturing Tax Tips
Can you deduct R&D expenditures as a current business expense?

The expenditures of research and development (“R&D”) are generally capital expenses. However, you can choose to deduct these expenditures as current business expenses.

You may use one of the two following methods of accounting for R&D expenditures:

  • You may deduct your R&D expenditures in the tax year, in which you paid or incurred,
  • You may amortize such expenditures over a period of not less than 60 months

You must charge to a capital account any R&D expenditures that you do not deduct currently, nor defer and amortize.

You may claim the R&D credit against tax for certain qualified R&D expenditures, and combine the credit as one of the components of the general business credit. The R&D credit is a nonrefundable tax credit.

For detail information of R&D expenditures, please select from the following topics:

Current-year Deduction of R&D Expenditures

Amortization of R&D Expenditures

Emil Estafanous, CPA, CFF, CGMA