On an hourly contract, the client's money often pays for research that fails, and that can decide who owns the R&D tax credit.
David Wiener walks through a made-up engineering firm designing a foundation for a difficult site. The first two approaches fail and the third works. Under an hourly contract the client paid for every hour, failed designs included, so the client carried the risk and the research was funded. Nothing about the engineering changed. Only who was on the hook.
From The Tax Strategy Playbook.
Full episode: https://taxstrategyplaybook.com
No-cost analysis through CSSI: https://calendly.com/david-wiener/cs or 770-224-8504, option two
This is educational content, not tax advice for your situation. Talk to your tax professional.