Many companies do simulations, modeling, or hypothesize to improve something they already do or create a new product. If this sounds like your company, you could be saving money on your taxes. So far, we have discussed permitted purpose and the elimination of uncertainty test. These tests are part of a four-part process to qualify for the research and development tax credit. Today we will be discussing how proper documentation and experimenting can save you thousands in taxes.
The secret to being able to pass this portion of the test, is by keeping thorough records on all projects related to research and development. By documenting every prototype, trial and error, and rendering step by step, you can make your life so much easier by streamlining the time it takes to complete the R&D credit.
One of the hardest and most time-consuming parts of the R&D credit for companies is gathering all the documents needed to validate the numbers. PriceKubecka has worked tirelessly to make this process as easy as possible. We now have a system to make the initial year, and each subsequent year, even easier to apply for the credit. If you would like to learn how PriceKubecka could save you from the headache of a difficult R&D tax credit and provide your company with substantial tax savings, contact us today.