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March 3, 2023
Question

How can I amortize R&D expenses in accordance with section 174?

  • March 3, 2023
  • 1 reply
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Tubotax seems to only allow 7-year depreciation IAW Section 179. I need 5-year IAW section174 per IRS pub 535

1 reply

March 3, 2023

Here's how to enter a Section 179 asset:

 

On “Here’s your [work] info”

 

  1. Select Add expenses for this work
  2. Select Assets, then Continue
  3. Start Assets
  4. On “Any Large Purchases (Depreciable Assets)?” select YES
  5. On “Did you buy any items for any business, rental property and/or farm that cost $2,500 or less in 2022?” select NO (even if you did)
  6. On “Did you make improvements to a building you used for this business in 2022?” select NO
  7. On “Describe This Asset” choose Intangibles, Other property
  8. On “Tell Us a Little More,” select Amortizable intangibles
  9. Complete “Tell Us About This Asset / Large Purchase”
  10. On “Select a Code Section,” choose 174: Research & Experimental Costs
  11. On “Recovery Period” enter 5
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