Last spring I started up a C Corp. My products are hypnosis mp3 files--digital products. I'm not certain if, as digital products, they are considered "tangible personal property" under the uniform capitalization rules. Since they are not really "tangible" and I have no actual inventory, I wouldn't think they would qualify. But reading through all the IRS guidelines on uniform capitalization, there is no clear answer. I'm wondering, and hoping, that someone here might have some experience or knowledge about whether digital products qualify as "tangible personal property" under uniform capitalization.
I did try the IRS. No one seemed to know, so they were going to pass my question on to someone who would know and would call me. Well, I never got a call. Today, I received an e-mail that regurgitated the uniform capitalization rules as they are found on form 1120. I'm going to try calling them again, but I'm not holding my breath that I'll get any kind of helpful answer.
Anyway, if someone can answer my question, I'd really appreciate it.
Russ
I did try the IRS. No one seemed to know, so they were going to pass my question on to someone who would know and would call me. Well, I never got a call. Today, I received an e-mail that regurgitated the uniform capitalization rules as they are found on form 1120. I'm going to try calling them again, but I'm not holding my breath that I'll get any kind of helpful answer.
Anyway, if someone can answer my question, I'd really appreciate it.
Russ
Comment