3 ms·
Except 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.
by agwa 4y ago
Except 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."