TAX - Research Activities - IRS Section 174 - 41(d)

[Tirador]

Has anyone looked into the applicability of IRS Section 174 to distilled product development and/or the development of manufactureing processes for the production of distilled products?

I'm reviewing the regs now for our taxes and am curios as to what if any thoughts others in the community have.

S.

[Chris Martin]

I don't see any reason why you can't use 174 for product development or for what you spend "tweaking" a product recipe. Basically, anything where there is not "certainty" as to the outcome...

You may have already read this, but here's the IRS's take on it:

http://www.irs.gov/businesses/article/0,,id=156366,00.html

[Tirador]

Yup, I read that ... and I think you might be right, but I'm just not sure.

Anyone else have a thought or two?

S.

I don't see any reason why you can't use 174 for product development or for what you spend "tweaking" a product recipe. Basically, anything where there is not "certainty" as to the outcome...

You may have already read this, but here's the IRS's take on it:

http://www.irs.gov/businesses/article/0,,id=156366,00.html