|
I'm not sure about LLC, need to check. What I know, from my fortunately tiny exUSSR accounting practice (greetings from Ukraine!), investments to capital cannot be expensed. Instead, these costs have to be capitalized and amortized (but exists some not too wide spectrum of variants, how exactly capitalization payments will be distributed - linear, and non-linear). And usually this is not bad, because, when you for example buy building for office, without capitalize, you have to immediately pay taxes for all it's cost.
But with capitalize you'll pay taxes on amortization payments. I don't know, why R&D programming (engineering) before considered as expenses, but technically govt is right, they are really investments. For material actives, like buildings all these are important, because investments could be huge, and also large risks, building could become unprofitable. For example in Japan, now, when you found building, you have to create special fund (and fill with money), which will cover all annihilation costs, including expenses of third persons and return terrain to some approved state after building become unprofitable. From other side, all these could open new opportunities for insurance business, to insure investments on R&D programming. As now, officials recognize R&D programming as investment. |