#architecture
Architecture
Financial management and bookkeeping for architecture firms and professionals
The Tax Court Just Redefined "Funded Research" for the R&D Credit — and Most Client-Funded Firms Are About to Fail It
In Smith v. Commissioner (T.C. Memo. 2026-50), the Tax Court denied an architecture firm's R&D credit on two of six client projects because IP-assignment and reuse-approval clauses forfeited "substantial rights," and limited four more to research expenses exceeding client payments — putting standard architecture, engineering, and consulting contracts on notice.
Architecture Firm Bookkeeping: AIA B101 Phases, ASC 606 Revenue Recognition, and the KPIs That Predict Profitability
How independent architecture firms and design studios should handle AIA B101 phase billings, ASC 606 over-time revenue recognition, sub-consultant pass-throughs, W-2 vs 1099 classification, Section 179 depreciation, E&O insurance, multi-state nexus, and the Deltek Clarity KPIs (net multiplier ~3.0, utilization ~59%, overhead ~177%) that separate profitable studios from struggling ones.
Section 179D Before the Sunset: How Architects and Engineers Claim the Energy-Efficient Buildings Deduction by June 30, 2026
Section 179D lets architects, engineers, and contractors claim up to $5.94 per square foot in federal tax deductions on energy-efficient projects for tax-exempt building owners — but new claims sunset for projects starting construction after June 30, 2026 under the OBBBA.
Bookkeeping for Architects: A Complete Guide to Managing Your Firm's Finances
Understand the unique financial rhythms of architectural practice and learn specialized bookkeeping strategies that can help your firm thrive. This guide covers everything from project-based accounting fundamentals to tax strategies tailored for architects.