Comment by hartator
3 years ago
> See c(3). Any software development is unambiguously R&D.
"For purposes of this section" to me means you don't have to justify software development as R&E if you define that software development work as R&E.
Being pedantic, but it's R&E not R&D.
Except the purpose of the section is to say that R&E has to be amortized. So it seems pretty clear to me that software development costs have to be amortized.
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.
According 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/ch...
It is ambiguous even if you disagree with Bloomberg.
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