We've discussed the details on off-the shelf software tax deductions,amortization in our previous posts. We might think of developing software on our own. In such cases, we might have our development team set up, our R&D setup, patents, prototype, formula, technique,invention and such costs associated with the software product we develop.
For small home business like simple websites, we can outsource web design and development to outside vendors.These costs are tax deductible under section 174. It is interesting to notice that the software we develop can be used for our own purposes, can be sold out, can be licensed to others.
For small home business like simple websites, we can outsource web design and development to outside vendors.These costs are tax deductible under section 174. It is interesting to notice that the software we develop can be used for our own purposes, can be sold out, can be licensed to others.
