Comment by zdragnar
6 months ago
Presumably that still counts as "developing software"- the regulation doesn't mention "coding" at all.
6 months ago
Presumably that still counts as "developing software"- the regulation doesn't mention "coding" at all.
A fair point.
Or is it "using software"?
A person typing an essay with a word processor in doing more work than many of the users tweaking no code software.
A person typing an essay with a word processor is producing an essay. A person using a no-code tool to modify a software process is producing software processes.
The nature of the tweak involved probably determines the classification of the effort, but for tax purposes and R&D expense amortization, it is a percentage of time basis.
If the executive tweaks the code once, the percentage is so small it won't count as far as anyone cares.
If 20% of the executive's time is tweaking the tool, then odds are the company cannot expense 20% of the executive's salary and instead must claim that portion as R&D over five years.
Back before 174, I worked for a company that did claim R&D but only for one of the projects I worked on. As such, I had to be careful filling out my timesheet because they wanted an accurate accounting of what was salary expense and what was R&D.