Re:Reduce your startup's payroll taxes through the new Feder...
by hn_throwaway_99 on Tuesday June 27, 2017 @11:32PM
(#14651518)
Are you sure that's why? Many companies do this to differentiate between capex and opex, but it's rare that all new development would qualify for R&D credit.
[ Parent
| on HN ]
Re:Reduce your startup's payroll taxes through the new Feder...
by fooey on Wednesday June 28, 2017 @11:37AM
(#14655022)
Yeah, we had an all hands meeting where they explained that this was the reason. We're small, and money is tight, so saving a couple hundred thousand dollars a year is a lot of motivation for people to track their time accurately.
We're basically creating a new industry niche, so it is clear R&D. It's not like we're just churning out new shopping carts sites for the customer of the week.
We're just wrapping up our Series A, which included a major investment from CAT though, so we're in a lot better shape than we were a year ago when we started the initiative to take advantage of the tax credit.