4 ms·
The problem is the one above that at the start of the section: (1) except as provided in paragraph (2), no deduction shall be allowed for such expenditures, an
by silverlight 4y ago
The problem is the one above that at the start of the section:
(1) except as provided in paragraph (2), no deduction shall be allowed for such expenditures, and
What that means is, you can't take it as a normal business expense deduction, except by following (2) which is to amortize it.
- PaulDavisThe1st 4y agoThe question is who gets to decide that a given expenditure is an R&E expenditure. The way the law is written (even with the TCJA amendment) sounds to me as if the taxpayer makes this determination. Why would a taxpayer make such a determination? Presumably for the R&D credit. I still do not see any clear indication that a taxpayer is required to consider any expenditures as R&E expenditures, though the new clause about software is ... troubling.