Comment by ericpauley
3 years ago
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.
3 years ago
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.
Not one mention of "software" in that article. It's clearly written in a general context where this may be true. They don't mention c(3) at all:
"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."