Question
Claiming expense for wages used in R&D Credit calculation
Working in Lacerte on amended returns to claim the small business OBBBA provision for immediately expensing previously capitalized DREs in 2022 and 2023. I have not seen any clarification as to how we are to show this immediate expensing. I don’t believe we are supposed to fully override the amortization to 100% but I’m also not clear as to whether we add those previously unclaimed wage expenses as wages on the business return. Does it become a separate line item expense for “Research & Experimentation Expenditures”? If so, that would leave the 199A deduction calculation off-base since the wages aren’t being fully utilized.
Does anyone have any insight to ensure these amended returns don’t get rejected?
