Given you’ll eventually get that full software deduction tax break back, just spread across several years, I am surprised there aren’t companies that will finance that to have the money upfront (with a fee of course :( )
But most startups get broke in several years, and codebases can't be repurposed as easily as, say, a fries-making machine, so the fee need to be very high to compensate the risk.
No one cares because most software developers are employed at big companies that can amortize. Even YC will probably just increase its seed instead of complain and consider it a "cost of business". This affects only marginal people. I am interested to talk with you about this if you want (feel free to reach, my email is in my profile).
> Even YC will probably just increase its seed instead of complain
Does it even impact these type of companies? 90% of the time at this stage you'll have very little income compared to expenses.
Re:Why YC went to DC
by sethammons on Tuesday June 04, 2024 @03:35AM
(#40571679)
Was that profit after taxes? Or did it cost you $88k to run the business? Did you get to pay yourself?
>Or did it cost you $88k to run the business?
Why do you speculate that number? With $1M in revenue and $1.2k in profit, there must have been $998.8k in expenses. I assume "pay yourself" was part of the $998.8k. But I don't know the answer to the other part of your question: I don't know if the $90k in taxes are included in the $998.8k expenses.
Bootstrapping a tech company in a post Section 174 world doesn’t even seem feasible. I can’t believe this issue isn’t being taken more seriously.