What is Research and experimental expenditures?
In short
Under the One Big Beautiful Bill Act, domestic research and experimental expenditures paid in tax years beginning after 2024 can be deducted immediately again. Foreign research costs must still be amortized over 15 years.
Key takeaways
- From 2022 to 2024, domestic research costs had to be amortized over 5 years.
- Small businesses can elect to apply immediate deduction retroactively to those years.
- Software development costs are treated as research expenditures.
Where it's tested
REG: Property Transactions: Basis & Cost Recovery — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Under the One Big Beautiful Bill Act, which statement about bonus depreciation is correct for qualifying property acquired after January 19, 2025?