PM35
New Member

Tax law changes

How does a small business follow this new procedure for capitalizing their R&D expenses while at the same time listing the appropriate amounts paid to members via guaranteed payments for the R&D work they did? These guaranteed payments will be deducted inappropriately it seems like. But, in order to provide the correct information to members on their k1's they have to be listed and can't just be added to the R&D expenses that will be capitalized. Thanks