Reporting Software Research & Development expense

[mb2022]

How do I file Software R&D expense? 

[JamesG1 · Accepted solution]

IRS Publication 535 states:

Research and Experimental Costs

The costs of research and experimentation are generally capital expenses. However, you can elect to deduct your research and experimental costs as current business expenses, elect to amortize your research and experimental costs in equal amounts over a period of 60 months or more, or elect to amortize your research and experimental expenditures over a 10-year period. Your election to deduct these costs is binding for the year it is made and for all later years unless you get IRS approval to make a change.

In TurboTax Business, create a category under Deductions / Your Deductions / Business Expenses / All other expenses.

To make the election to defer and amortize these costs, see IRS Publication 535 chapter 8 How to make the election.