Hi folks, Looks like it's not just us who are finding some "interesting" tax implications in repurposing some code developed for a client into a stand- alone product....I've been asking people to send in questions for the forthcoming CSI Tax and IT workshop, and got this one:
> What are the tax implications for when you originally develop a > product for your own internal use but realise as you are designing and > > developing the product, it will have international sales potential > so you begin to prepare and research for sale as well? Is the cost > of development an expense (tax deductible) or an asset or something > else??? If originally built for yourself and cost of development is > viewed as an expense what happens when you start selling it later? We (SPIS) have just written a long detailed explanation to the IRD covering just this issue to try and distinguish between software development that happens serendipitously as a by-product of a client service, and development where you go forth to produce your killer app from scratch (complete with all that important market research beforehand of course :-) It can be an expensive process even when you get all the t's crossed, so if you've done this, are doing this, or are likely to do this, you need to be at the CSI IT Tax workshop! April 8, from 3pm at CII; register here: http://www.canterburysoftware.org.nz/wksp_regn.htm $25 CSI members; $35 for non-members We've got Michael Mayes, a tax expert from Deloitte, coming in to cover the issues, so think of this as an excellent investment at brilliant rates (thanks Michael!). We're still finalising the program, but it looks like we'll be covering the important issues such as tax and software development; GST and Web- based business, and suchlike. (Keep firing those specific worries to me so I can help Michael get prepped with our concerns!) And we will have IRD people there (be nice!) *after* we've gone through the meaty bits so we can find out how they can help us (they *can* be helpful) and what their views are of the issues we've covered. Think of it as a chance to get some local IRD people familiar with the IT sector and how helpful *that* could be when you come up for audit.... See you there, Vicki Hyde for Canterbury Software Inc ====================================================== SPIS Ltd, Box 19-760, Christchurch, NZ http://.spis.co.nz * FREE TurboNote+ sticky note trial: http://TurboNote.com --> via Canterbury Software email forum: Success through Connections Email your messages to [EMAIL PROTECTED] Searchable list archive: http://www.mail-archive.com/[EMAIL PROTECTED] Leave or rejoin the list: http://canterburysoftware.org.nz/forum.htm
