Section 174 Capitalization: Things to Know

Elena Petelko
EXISTEK
Published in
2 min readMar 21, 2024

Why is section 174 so widely discussed among U.S. tech companies? What are the major changes, and how do they prepare for them? Read the article to discuss more details on section 174 capitalization and outline the significant aspects for consideration.

Existek is a custom software development company helping our customers to solve their business challenges with best in its class software. Our team specializes in mobile development, web development, desktop development, business automation & intelligence development, AI development, ERP development. Contact us to get an instant and free expert consultation about your project.

List of the Content

  • What is section 174?
  • What are section 174 changes?
  • Which businesses are required to adhere to section 174 capitalization?
  • What R&D activities are qualified under 174 section?
  • What are section 174 expenses?
  • How to prepare for new sec. 174?
  • Conclusion

As the tax change was originally not intended to be enacted into law, section 174 changes have faced broad disapproval, resulting in several unsuccessful efforts to restore the law to its pre-2022 state. Besides, section 174 capitalization is under much discussion, and the market closely monitors new updates.

…………………………………….

Read the full article about Section 174 Capitalization: Things to Know and share your thoughts on it.

If you have any additional questions, need a professional consultation, or look for a dedicated development team — feel free to contact Existek. We’ll share our extensive experience as we have delivered custom software development services since 2012. You can fill in the form at our contact page for any further assistance.

--

--