R&D/Software Costs: Mandatory Capitalization Rules Begin in 2022

Written By Shalik CPA PC

Beginning in 2022, the TCJA’s change to Section 174 generally required many businesses to capitalize and amortize research and experimental expenditures (including certain software development costs), rather than deduct them immediately.

This can materially affect cash taxes and estimated payments for startups and growing businesses with development-heavy spend.

Shalik CPA PC https://www.shalikcpa.com
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