How do I add a statement to Form 1065 for the change of accounting method to capitalize R&D costs as required by Rev Proc 2023-08?

[Bryan_W]

Under the 2017 Tax Cuts and Jobs Act, starting in 2022 companies can no longer elect to expense R&D but rather have to capitalize and amortize. According to Rev Proc 2023-08, to make the automatic change election companies must file a statement in lieu of Form 3115. Where in ProConnect can I go to file the appropriate statement?

[IntuitRebecca · Accepted solution]

Hi there,

It looks like we don't have a built-in statement for the R&D change of accounting method established in that revenue procedure. You can either prepare the statement separately and attach it as a PDF on the Electronic Filing screen; or go to Other > Elections and click the "Election" link at the top right to enter the info as an "Other" election.

Most people prefer to draw up the statement separately in a word processor, since the Elections screen won't allow you to format the text. 

- Rebecca

[George4Tacks]