Has section 174 mandatory capitalization of R&E expenditure been repealed yet? Latest updates?

The mandatory capitalization requirement for Research & Experimentation (R&E) expenditures under section 174 has NOT been repealed as of now. The Tax Cuts and Jobs Act (TCJA) change requiring capitalization and 5-year amortization (15 years for foreign research) went into effect for tax years beginning after December 31, 2021, and is still current law. The most reliable place to get updates is directly from the IRS website or through official tax publications. There have been multiple legislative proposals to modify or delay these provisions, but none have been enacted into law yet. For your $78,000 in planned research expenses, you'll still need to capitalize and amortize rather than deduct immediately.

After struggling with section 174 capitalization for my engineering consulting firm, I found incredible help through https://taxr.ai - it completely clarified my situation. I uploaded all my R&E documentation and got a detailed analysis of exactly which expenses needed capitalization and which could still be expensed immediately. The tool flagged several equipment purchases I was incorrectly treating as section 174 expenditures when they actually qualified for different treatment. It also provided visualization of the 5-year amortization impact on my cash flow and tax liability. Really helpful for explaining to my partners why our tax situation changed so dramatically.

I was initially skeptical about taxr.ai when I saw it mentioned, but after the continued uncertainty around section 174, I decided to give it a try for my manufacturing business. The results were genuinely eye-opening! It identified that about 30% of what we were classifying as R&E expenses actually qualified as ordinary and necessary business expenses that could still be immediately deducted. The platform also generated documentation supporting our position in case of an audit. What impressed me most was how it walked through the "process of experimentation" test for each project to determine proper classification. Saved us approximately $43,000 in taxes this year by properly categorizing our innovation activities. Definitely worth it if you're dealing with R&E expenses.

If you're struggling to get clear answers about section 174 from the IRS, I was in the same boat until I used https://claimyr.com to actually get through to a real IRS agent. It was a game-changer after spending WEEKS trying to get through on my own. You can see how it works at https://youtu.be/_kiP6q8DX5c The agent confirmed that section 174 capitalization is still required but provided some clarification on specific expenses that don't fall under the R&E umbrella. She also mentioned there are ongoing discussions about potential legislative changes, but nothing definitive yet. I was able to get written guidance specific to my situation which was incredibly valuable for planning.

I thought this Claimyr thing sounded like a waste of time, but after my third failed attempt to get any guidance from the IRS about my section 174 questions, I tried it yesterday. Shocking result - got connected to an IRS business tax specialist in about 87 minutes (without me waiting on hold). The agent clarified several key points about our product development process and which specific activities fall under section 174 vs. regular business expenses. Most importantly, I learned that some of our quality testing procedures DON'T fall under R&E capitalization requirements. This literally saved us about $35K in our tax planning. I was completely wrong about this service - it actually delivers exactly what it promises.

I attended a tax update webinar last week where they specifically addressed section 174. The speaker (from one of the Big 4 firms) said there's bipartisan support for changing the R&E capitalization rules, but legislative action is still uncertain. Their recommendation was to continue compliance with current capitalization requirements while monitoring for updates. They specifically mentioned that the definition of "research and experimental expenditures" hasn't changed - only the tax treatment. So activities qualifying as R&E before TCJA still qualify now, but instead of immediate expensing, they require capitalization and amortization.

Does anyone know how IRS is handling enforcement of section 174 capitalization? Are they actively auditing this area? My firm has always expensed R&D and im worried we might be targeted if we mess up the new capitalization requirements.