Re:Tell HN: Help restore the tax deduction for software dev ...
by api on Monday June 09, 2025 @02:55PM
(#44227964)
Doesn’t this also unfairly penalize bootstrapped companies? VC track companies seldom have taxable profits.
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Re:Tell HN: Help restore the tax deduction for software dev ...
by davidjfelix on Tuesday June 10, 2025 @01:53PM
(#44239464)
It may result in an outsized penalty to bootstrapped companies but being VC funded doesn't make you immune to this. VC funded companies with revenue will not be able to offset their revenue by reinvesting in R&D (software development) expenses, so in some cases they may be seen as having a profit when they previously wouldn't have. In those cases they'd have a tax burden.