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hkeown

What is a Qualified Research Expense?

By | R&D Tax Credits

The IRS defines Qualified Research Expenses (QREs) as the sum of “in-house research expenses” and “contract research expenses”. Those in-house research expenses include Wages: Taxable or subject to self-employment tax of individuals performing, directly supervising or supporting the qualified research. Supplies: Amount paid or incurred for materials used in the…

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The IRS Four-Part Test

By | R&D Tax Credits

To qualify for the R&D Tax Credit an activity must meet all four criteria of the “Four-Part Test”. The IRS Four-Part Test requires: a new or improved business component (product, process, technique, invention, formula or software), the business component to be technological in nature, some kind of elimination of uncertainty,…

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