Start-up Company offsets payroll taxes by $250,000 a year
Start-Up App Developer
$1.2M in R&D Tax Credits
Annual Revenue: $800K
This start-up company developed custom apps for small banking, insurance, andother financial service providers. While the company was experiencing losses (not payingincome tax), they reduced their payroll taxes by $250k per year. Remaining credits were carried forward to future years. For 2019, they are expectingto be profitable, and will apply the remaining credits and 2019 credit against anyincome tax owed for 2019.