🎧 New Episode: The Startup Growth Podcast — Saving Startups Millions, R&D Credit Deep Dive, and Breaking Down the Big Beautiful Bill w/ Jake Wedig

Hey There,

The newest episode of The Startup Growth Podcast is live!

Listen to the episode here.

In this episode, we chat with Jake Wedig, Director of Tax at Fondo, who breaks down the recent changes in tax legislation that every startup founder should know about. Jake walks us through the game-changing provisions in the “One Big Beautiful Bill” and explains how startups can navigate the complex world of R&D tax credits to get substantial cash back on their development investments.

We dive deep into the challenges that Section 174 has created for startups, particularly how it's complicated R&D expense deductions and impacted cash flow for growing companies. Jake shares practical strategies for dealing with these changes, including when amending tax returns might make sense for startups that have been pushed into unexpected taxable positions. He also covers the powerful benefits of bonus depreciation for equipment purchases and explains how the increased Section 179 deduction cap can help, while being clear about its limitations regarding net operating losses.

One of the most valuable parts of our conversation focuses on Qualified Small Business Stock (QSBS) and the incredible tax benefits it can provide founders when they eventually sell their companies after the five-year holding period. Throughout our discussion, Jake emphasizes that tax laws are constantly evolving, and startups need to stay proactive with their tax planning to capture these opportunities.

Key takeaways:

• The importance of intentional tax planning partnerships between startups and their advisors

• How the One Big Beautiful Bill creates new opportunities for startup tax optimization

• Maximizing R&D tax credits for substantial cash returns on development investments

• Navigating Section 174's impact on R&D expense deductions and cash flow management

• Strategic use of amended returns to recover from unexpected tax positions

• Leveraging bonus depreciation and Section 179 for immediate equipment deduction benefits

• Understanding QSBS benefits for long-term founder wealth optimization

• Staying informed on evolving tax legislation to capture emerging opportunities

I hope you find this educational content both valuable and actionable for your startup.

David J Phillips

Founder & CEO at Fondo

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