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Does this rule encourage off-shoring? Meaning that contract developers just invoice you and you write that off as any other expense, or does it apply equally th
by codazoda 3y ago
Does this rule encourage off-shoring? Meaning that contract developers just invoice you and you write that off as any other expense, or does it apply equally there?
- creer 3y ago"Just as any other expense" meaning that it's a software development expense. I don't think it matters much in US tax whether you do it in house or not. It might matter if you buy finished software modules and integrate and resell them.
- PaulDavisThe1st 3y agoIf the interpretation that all software development expenses MUST be treated as R&D expenditure and claimed as a deduction is correct (which it might be, but it might not be), then it's worse for off-shoring because the amortization period is 15 years. That is, you paid off-shore contract developers $100k, you can only deduct $6667 of that in any given year, over the next 15 years.