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A comment on The time bomb in the tax code that's fueling mass tech layoffs. Parent comment

Re:The time bomb in the tax code that's fueling mass tech la... by sitkack on Friday June 06, 2025 @04:01PM (#44204446)
Software is like Art, it doesn't have value until sold or can be used. If they sell services based on the software, they are generating revenue and then taxation on that revenue can occur.

Same as if they sell the software, either as a copy or ownership.

But not being able to take salary as a business expense seems like as thing that would happen if software in and of itself has value, which is largely does not.

[ Parent | on HN ]
Re:The time bomb in the tax code that's fueling mass tech la... by thaumasiotes on Friday June 06, 2025 @04:21PM (#44204601)
> But not being able to take salary as a business expense seems like as thing that would happen if software in and of itself has value, which is largely does not.

To me it seems like a thing that just wouldn't happen. Forget software.

Say you own a McDonald's, and as part of your operations you have some people on staff to take orders, prepare food, and clean the bathrooms. Why are their wages not a deductible business expense?

If the answer is "they are, don't be stupid", then... what exactly was the R&D tax break?

[ Parent | on HN ]
Re:The time bomb in the tax code that's fueling mass tech la... by jay_kyburz on Friday June 06, 2025 @05:35PM (#44205215)
The software itself has no value, it's the licence to use the software.
[ Parent | on HN ]