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Exactly. 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.
by ericpauley 4y ago
Exactly. 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."