2 ms·
https://www.law.cornell.edu/uscode/text/26/174 https://www.law.cornell.edu/uscode/text/26/174 > 26 U.S. Code § 174(c)(3): > (3) Software development >
by albrewer 3y ago
https://www.law.cornell.edu/uscode/text/26/174 https://www.law.cornell.edu/uscode/text/26/174
> 26 U.S. Code § 174(c)(3):
> (3) Software development
>
> For purposes of this section, any amount paid or incurred in connection with the development of any software shall be treated as a research or experimental expenditure.
- phoehne 3y agoMy guess is they'll treat it like repairs and improvements on physical equipment. Fix a broken calculation, that's opex. Add an API for better Google integration, that's capex.
- citizenkeen 3y agoThat's not how that works. The law is pretty explicit.
- verdverm 3y agoHow is the IRS defining "development"? I don't think it's the same as we do, and more akin to land development and improvement.
- phoehne 3y agoI think that will actually be decided by IRS interpretation. I can’t imagine an administrative judge would have that narrow a view, given the way other assets are treated.