Comment by s1artibartfast

agreed. It is quite backbreaking if you dont have a huge bucket of money.

One alternative if it must be treated as a capital asset is to allow accelerated/immediate depreciation for small firms and individuals.

I can see the point that for large firms like with diversified R&D portfolios, development, on average, results in creation of capital assets.

For small firms, it is absolutely unclear that the product has any durable value at all.