4 ms·
> See c(3). Any software development is unambiguously R&D. "For purposes of this section" to me means you don't have to justify software development as R&E if
by hartator 4y ago
> See c(3). Any software development is unambiguously R&D.
"For purposes of this section" to me means you don't have to justify software development as R&E if you define that software development work as R&E.
Being pedantic, but it's R&E not R&D.
- agwa 4y agoExcept the purpose of the section is to say that R&E has to be amortized. So it seems pretty clear to me that software development costs have to be amortized.
- ericpauley 4y agoExactly. I don't see how anyone can read this and tell the IRS with a straight face that their software dev doesn't need to be ammortized.
- hartator 4y agoAccording to Bloomberg [1], for ongoing business expenses, it doesn’t. For startup costs, it does need to if you want these RD credits. [1] https://news.bloombergtax.com/tax-insights-and-commentary/changing-research-tax-break-rules-will-harm-fewer-than-predicted https://news.bloombergtax.com/tax-insights-and-commentary/ch... It is ambiguous even if you disagree with Bloomberg.
- ericpauley 4y agoNot one mention of "software" in that article. It's clearly written in a general context where this may be true. They don't mention c(3) at all: "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."