Acquired in-process research and development (IPR&D) is never deductible for tax purposes and results in an increased effective tax rate.

Question

Quizplus · Accepted Answer

Acquired in-process research and development (IPR&D) is considered an intangible asset that has not yet reached the technological feasibility stage and therefore cannot be deducted for tax purposes. This results in an increased effective tax rate as the cost of acquiring IPR&D is not immediately offset by a tax deduction.

Acquired In-Process Research and Development (IPR&D) Is Never Deductible for Tax