Comment by OneDeuxTriSeiGo

> • data conversion activities, except for activities to develop computer software that facilitate access to existing data or data conversion

ex: linking excel spreadsheets or setting up excel to ingest data from a sharepoint or network drive would still fall under the definiton of software developer

> • maintenance activities after the taxpayer places the computer software into service

So a sysadmin or a DB admin writing scripts or a DB admin writing queries and adding new reports would be considered software development

It just seems way too easy for arbitrary employees to get pulled in under this definition because it just fundamentally misunderstands how widespread programming is.

raverbashing 7 days ago

You missed the paragraph saying that maintenance activities are not considered development activities

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OneDeuxTriSeiGo 7 days ago

But that's the rub right? What is the definition of maintenance activities? And for what software? If you are writing a new script to automate something or updating an existing script, is that not software development?
If that's considered maintenance activities then would maintaining a software codebase not be considered maintenance activities then?

Reply View | 12 replies
- dgfitz 7 days ago
  
  In my simple mind, if software has been "released" it is no longer R&D, and "bug fixes" (which should include continuous improvements such as your example) are not research.
  I may be way, way wrong though.
  
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  jandrese 7 days ago
  
  That seems too exploitable to pass muster in the court. If you release Beta 0.0.1 of your software after 2 months of development then spend the next 5 years getting it up to version 1.0 that's clearly a development effort not a maintenance effort.
  
  Reply View | 4 replies
- jamessinghal 7 days ago
  
  The IRS Guidance says this in 5.05(2), which is most relevant to software startups:
  (2) Computer software developed for sale or licensing to others. In the case of computer software that is developed for sale or licensing to others (or upgrades and enhancements to such software), activities that occur after such software (or upgrades and enhancements to such software) is ready for sale or licensing to others, such as marketing and promotional activities, maintenance activities that do not give rise to upgrades and enhancements, distribution activities (for example, making the software available via remote access), and customer support activities.
  So they are maintenance as long as they "do not give rise to upgrades and enhancements", which would be the responsibility of the taxpayer to track. I'm sure there is more nuance to it in practice.
  
  Reply View | 4 replies
  
  JumpCrisscross 7 days ago
  
  Has the IRS actually dinged anyone for fucking with how they categorise software expenses?
  
  Reply View | 3 replies
- hattmall 6 days ago
  
  The concept and determining factor is how it relates to revenue. Is it an activity that supports or contributed to current revenue generation, or is it something that is expected to only contribute to future revenue generation.
  
  Reply View | 0 replies