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hi this is randy crabtree host of the unique cpa podcast and partner at trimerit specialty tax professionals just thrilled to be here to announce that we are starting this youtube channel where were going to be talking about tax topics that are important to you and were going to start today with 174 r d expense capitalization rules so this is an extremely important area that we need to talk about because im not seeing a lot of discussion happening on these new 174 rules let me give you a little bit of background so 174 defines r d expenses in the tax cut and jobs act that was defined at the end of 2017 there was a provision in there that said starting january 1st of 2022 we are no longer going to be able to deduct r d expenses as incurred what were going to have to do is capitalize those and amortize them over five years this is a big deal since 1950s weve been able to expense r d expenses as incurred simply by expensing them on the tax return the first year you have incurred r d