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Hi,
Are non-SRED software development projects tax deductible? Such as consulting fees, equipment purchased for software development?
My company has spent quite a bit of money creating this software, it's not completed yet but I read somewhere that CRA is more likely to audit you if you've have large expenses. I have the receipts to back the spending but the software is completely functional yet. In case I were to get audited, would my receipts and software documentation be enough?
Thank you!
Hi,
Yes, you can deduct expenses incurred for software projects that don't qualify for the SR&ED program. Note that capital assets purchased in the year are depreciated over a period of time.