@dcow, sure, but it says, and that's what all the fuzz imo is about:
"For purposes of this section, any amount paid or incurred in connection with the development of any software shall be treated as a research or experimental expenditure."
I certainly agree the wording is wholly suboptimal and confusing, but what I don't understand is the determination to pick the obviously borked interpretation, especially after clarification is given. There is no honest fair rational interpretation of the tax code that would result in needing to e.g. capitalize your IT team’s salary because they wrote a script to provision employee laptops. It can’t be interpreted that way because it’s not just. The for the purposes of this section caveat is really important. But also, pulling one sentence out of the document out of context is also somewhat fraught. The government isn’t allowed to steal money from software companies just because. That’s not remotely close to the spirit of the tax code.
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Was clarification given? If so, it would be rather strange to see these posts pop up on cnbc and other big sites, as it was already known and discussed some time ago.
I think that's up to the judicial branch to see if the new law/regulations are unconstitutional.
Whil I do agree it's messed up, but they're not really stealing, they're just borrowing from companies. Timing is pretty shitty though; a year or two ago, it would've made less of an impact, as capital was cheaper and easier to get.
Is borrowing the right term here? You don't get the tax you paid on your phantom profits back if you lose money the next year. You just pay marginally less tax if you make money. You’re spending money you would never have spent. A loan implies you get repaid.
That’s what is really fucked up as others are pointing out. If I don’t grow or grow slowly The gov’t is flat out robbing me. If I start a venture that I don’t expect will start generating revenue for 5 years, then the government has taken 5 * 1/5(sw-expenses)(tax-rate). Thats not a loan, it’s larceny.
"For purposes of this section, any amount paid or incurred in connection with the development of any software shall be treated as a research or experimental expenditure."