Comment by gamblor956
3 years ago
R&D = "research and development"
If what you are doing is software development then obviously it is a development activity that falls within the meaning of development for purposes of tax laws.
Software programming that does not constitute development, such as bug fixing, is not subject to capitalization.
R+D is "research and development", not "research" and "development". It's specifically development of research into new products. Otherwise a carpenter could be seen as "developing" wood into cabinets. If there's no research or experimental process involved in the work, then it's not R+D.
I can imagine Unicorn Research Inc deciding to rename all “developer” titles to “programmer” titles, and removing the word “Research” from the company name.
I love when people on the Internet tell me I've been doing my job wrong for a decade...
It's research (as in new knowledge) and development (as in new products based on existing research and knowledge). Software generally falls into the latter category. A scientific process is not required but does make it easier to document qualification for the R&D credit.
And yes, a carpenter developing new cabinet designs absolutely would qualify for the R&D credit (and their salary could fall under the scope of this rule change).
> It's research (as in new knowledge) and development (as in new products based on existing research and knowledge).
This is... Exactly what I said?
> And yes, a carpenter developing new cabinet designs absolutely would qualify for the R&D credit (and their salary could fall under the scope of this rule change).
I feel I pretty clearly alluded to the physical process of turning wood into a cabinet, not developing novel new techniques for doing such.
What about work-for-hire?