With respect to the R&D credit:
The qualifying expenses are supposed to be for developing new products/improving existing ones.
Does the product have to be "tangible?" One client is developing a recruiting website, similar in functionality to "Monster.com." The "sales" for this "product" would be via subscription. But the product "sold" is really an intangible service.
Does this meet the definition of "qualifying R&D expenses?"
I am aware that attendant costs such as fringes, overhead allocations, etc. do not qualify.
The qualifying expenses are supposed to be for developing new products/improving existing ones.
Does the product have to be "tangible?" One client is developing a recruiting website, similar in functionality to "Monster.com." The "sales" for this "product" would be via subscription. But the product "sold" is really an intangible service.
Does this meet the definition of "qualifying R&D expenses?"
I am aware that attendant costs such as fringes, overhead allocations, etc. do not qualify.