R&D tax credit

“You guys took advantage of the R&D tax credit, right?”

I still remember when Jeff (my tax strategist), said this to me.

I had no idea what he was talking about.

“What the hell is a R&D tax credit” I said to myself…

So I responded to him…

“Not sure if we did or not, what does it do?“

Jeff looked back at me, and a big grin came across his face. 

I could tell I was in for a surprise.

“Oh you’re missing out.  So for your supplements, you can actually get a sizable tax credit for the R&D it takes to create them as long as you’re not white labeling them“

Interesting, I thought.  He went on…

“And it’s not just supplements, you can do it with most physical products as well as any type of software.  It’s a big savings that I’d say 80% of companies we work with aren’t taking, yet they’re entitled to it“

I remember intially being excited when Jeff told me this.

And then I got pissed off.

Cause when I had a $23 million dollar supplement company we were NOT taking advantage of this.

We could have saved a ton in taxes if we knew aboout the R&D credit.

However, we simply didn’t know about it.

We were naive. 

And so were our CPA’s at the time. 

But since Jeff showed me the power of the R&D tax credit, I’ve seen firsthand how big the savings can be.

I know at our last event in Vegas, Jeff showed Tim Oyler how he could save $90,000 or more on taxes simply with the R&D tax credit (Tim sells golf clubs that his company designs from scratch)

He also showed a big supplement company in our space how they could save close to $2.9 million a year in taxes (with a sizable chunk of that being the R&D tax credit).

So the R&D tax credit is huge.

And like I said it’s one of those things that most businesses aren’t taking advantage of.

I’m not gonna go into the nitty gritty of the R&D credit…

Cause frankly that’s above my paygrade.

But I do want to make you aware of it.

Especially if you sell physical products, or you’ve created some type of software.

Cause you could be leaving a lot of money on the table if you’re not using it.

So feel free to ask your CPA about it…

Or if you want, I can also connect you later this week to Jeff (my tax strategy guy) to see if they can help you.

I’m planning to do a few more days of these emails on taxes…

And then Thurs/Fri I’ll introduce you to Jeff.

Hope this was helpful.

I got some good stuff planned for tomorrow’s email as well, so make sure you tune in.

Take care.

– Justin