The Regular Method of calculation uses a percentage of the business's average gross receipts incurred during prior years that performed qualified research activities to calculate the R+D credit.
To calculate using the regular method:
- Turn on the regular method by selecting the ticker next to Regular Method.
- Indicate the first year that the business had Qualified Research Expenses (QREs) by selecting it from the dropdown
- Note: Doing so will mark this year as QRE Year 1
- Confirm that the values given for Gross Receipts, Fiscal Start Date, and Fiscal End Date for each year are accurate.
- Note: Gross Receipts for the prior four years are gathered from information entered on the Business Update
- Deselect any marked years that did not have any QREs by unchecking its box under Had QREs? This will remove the year from your base period.
- View your estimate in the top left under Current Estimate
