Sec. 174(d) in M&As: Risks and opportunities.
- Resource Type
- Article
- Authors
- Ferguson, Nicholas; Siebenaller, Kurt
- Source
- Tax Adviser; Oct2023, Vol. 54 Issue 10, p14-16, 3p
- Subject
- TAX Cuts & Jobs Act (U.S.)
MERGERS & acquisitions
ASSETS (Accounting)
ROLLOVERS (Finance)
STOCKS (Finance)
- Language
- ISSN
- 00399957
The article discusses the implications of the Tax Cuts and Jobs Act (TCJA) on Section 174 and its impact on merger and acquisition (M&A) transactions. It is reported that the TCJA changed the treatment of research and experimental (R&E) expenditures, requiring them to be capitalized and amortized over specific periods. It explores the challenges and opportunities presented by these changes in asset sales, asset sales with rollovers, and stock sales.