Comment by vlovich123
3 years ago
I think this is flawed in both directions. Sure when you’re primarily building new stuff maybe the cost of that should be amortized. What happens if you’re just maintaining a product though rather than actually developing new stuff? That doesn’t feel like R&D effort.
Maintenance of existing software doesn't count as R&D under this categorization. The IRS will have some helpful guidance available in June. You know, two months after the deadline.
Good luck figuring out how to do that accounting when teams are blended and all your workers are salaried.
Right now, adding features to an existing SaaS is looking a lot like maintenance work to me.
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