Tax years beginning after 2022 brought with them an uncomfortable change for many in the video game industry. Section 174 of the Internal Revenue Code, which previously allowed taxpayers to immediately expense their research and development expenses, now required taxpayers to capitalize and amortize those expenditures over a five- or even fifteen-year period. For many …
Next year, many companies will have a new compliance requirement. Beginning January 1, 2024, the Corporate Transparency Act (CTA) will require that domestic US companies and foreign entities operating within the US disclose their Beneficial Ownership Information. Under the CTA, companies will have to file their BOI report with the Financial Crimes Enforcement Network, or …
As exciting as receiving equity in a growing startup can be, without advanced planning, that equity can carry with it some severe tax consequences. An 83(b) election is a tool that new stockholders who are subject to vesting can use to mitigate the tax burden that otherwise comes with the vesting of their shares. Granting …
What is an 83(b) election? And what does it have to do with restricted stock? Read More »
As video game development continues to evolve, more game developers are turning to generative artificial intelligence (AI) tools to create engaging and immersive gaming experiences. From generating unique game content to optimizing game performance, AI tools offer a plethora of possibilities in video game development. However, using AI tools comes with its own set of …
Many companies find themselves, at some point, needing to part ways with a valued team member as part of a merger with or acquisition by another company. In these kinds of situations, the company being acquired often wants to reward the old employee for their services or offer them a softer landing while they seek …
Artificial intelligence, or “AI,” has recently taken the art world by storm. The concept is simple but novel. The user provides an AI software program with a text, image, or other material as a prompt, and then watches as the AI creates original works. Recently, a new application of this technology has been trending all …
On August 16th, 2022, United States President Joe Biden signed into law the Inflation Reduction Act. The bill principally aims to raise tax revenue by capturing some of the traditionally tax-free benefits for high-level executives and shareholders and requiring large corporations to pay a minimum tax. With that in mind, the changes should be analyzed …
Many companies want to reward employees, contractors, and others with incentives to reward their contributions without dipping into the cash needed to continue investing in the business. As a result, companies may turn to “deferred compensation” structures, giving these contributors stock options, future bonuses or other future compensation arrangements. These types of arrangements can be …
Many people are vaguely aware of something called a “research and development credit.” It may bring to mind pharmaceutical research, manufacturing processes, or other traditional processes that businesses have been improving and creating for generations. What people don’t realize is that the benefit of the R&D Credit doesn’t end there. Video game developers, software companies, …