Comment by albrewer

3 years ago

https://www.law.cornell.edu/uscode/text/26/174

> 26 U.S. Code § 174(c)(3):

> (3) Software development

>> 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.

4 comments

albrewer

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phoehne  3 years ago

My guess is they'll treat it like repairs and improvements on physical equipment. Fix a broken calculation, that's opex. Add an API for better Google integration, that's capex.

  • citizenkeen  3 years ago

    That's not how that works. The law is pretty explicit.

    • verdverm  3 years ago

      How is the IRS defining "development"?

      I don't think it's the same as we do, and more akin to land development and improvement.

    • phoehne  3 years ago

      I think that will actually be decided by IRS interpretation. I can’t imagine an administrative judge would have that narrow a view, given the way other assets are treated.