Ask YC: Is the R & D for startup development tax deductible?

1 points by apstuff 17 years ago | 3 comments

I'm curious as to whether new startups can deduct the development hours as R & D. If so, how do new companies formally track, quantify and price them?

answerly 17 years ago |

I have seen some software development R&D deductions at my previous companies here in the US. I am not an accountant and the definition of what is deductible is pretty narrow. The best advice is to discuss with a tax professional since the last headache you need in your startup is an IRS hassle.

bdfh42 17 years ago |

You had better clearly state your country as tax rules tend to vary as you go around the world.

noodle 17 years ago |

that is quite a large blanket of things to be deductible. i doubt it.

/not an expert