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Question
are software development costs capitalized or expensed?
AI accountant’s answer:
Software development costs can be treated as research or experimental expenditures according to the tax code. This means you can typically expense these costs in the year they're paid or incurred. However, keep in mind that the rules can get complex depending on the nature of the software development and its intended use. For example, if the software is being developed for sale or lease to others, different rules may apply.
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