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A comment on Why YC went to DC. Parent comment

Re:Why YC went to DC by raincole on Tuesday June 04, 2024 @12:29AM (#40570692)
Could someone elaborate this for an uninformed like me? Does it mean if you (a company) pay $1M as salary this year, only $0.2M can be treated as cost?
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Re:Why YC went to DC by zacharycohn on Tuesday June 04, 2024 @03:07AM (#40571493)
Essentially. An extremely oversimplified scenario: On paper if you made $1M in revenue, and had $1M in salary expenses that were all R&D, you would deduct $200k of that salary and be left with $800,000 in "profit" that you have to pay taxes on.

Except you don't have $800k. You have $0k.

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Re:Why YC went to DC by giancarlostoro on Tuesday June 04, 2024 @08:33AM (#40573831)
Yikes. I kept wondering why R&D has been dead for so long. I have made comments here on HN about how R&D is responsible for so many tech advancements we still use, especially at Bell Labs.
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Re:Why YC went to DC by zacharycohn on Tuesday June 04, 2024 @10:13AM (#40574870)
This is a recent change, thanks to the 2018 tax code changes (the implementation was delayed until this tax year).
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Re:Why YC went to DC by jimbobthrowawy on Tuesday June 04, 2024 @03:33PM (#40578136)
Why would that be counted as profit at all, if it was spent?
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