Tell HN: Submit comments on IRS guidance to SEC 174 expenses

Re:Tell HN: Submit comments on IRS guidance to SEC 174 expenses by patmcc on Sunday November 05, 2023 @11:18AM (#38152457)

Exactly. And I do think the truth lies somewhere in the middle - some software development creates capital assets, but lots does not.

And either way it's very painful to change the rules entirely in a single tax year, especially for small businesses. FAANG companies will weather this either way, but it could kill small software businesses.

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Re:Tell HN: Submit comments on IRS guidance to SEC 174 expenses by s1artibartfast on Sunday November 05, 2023 @11:48AM (#38152822)

agreed. It is quite backbreaking if you dont have a huge bucket of money.

One alternative if it must be treated as a capital asset is to allow accelerated/immediate depreciation for small firms and individuals.

I can see the point that for large firms like with diversified R&D portfolios, development, on average, results in creation of capital assets.

For small firms, it is absolutely unclear that the product has any durable value at all.

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