I'm curious as to whether new startups can deduct the development hours as R & D. If so, how do new companies formally track, quantify and price them?
I have seen some software development R&D deductions at my previous companies here in the US. I am not an accountant and the definition of what is deductible is pretty narrow. The best advice is to discuss with a tax professional since the last headache you need in your startup is an IRS hassle.