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A comment on Tell HN: Help restore the tax deduction for software dev in the US (Section 174). Parent comment

Re:Tell HN: Help restore the tax deduction for software dev ... by grogers on Monday June 09, 2025 @03:29PM (#44228398)
How does this compare to a machine that breaks and is thrown away before its amortization is complete? For the machine can you immediately deduct the remaining amount or is it required to continue to spread the value over the original time period?

I would imagine software that is thrown away should be similar?

[ Parent | on HN ]
Re:Tell HN: Help restore the tax deduction for software dev ... by ensignavenger on Monday June 09, 2025 @05:00PM (#44229416)
Generally speaking, yes, you can immediately deduct the non depreciated value. Most machines will be scraped, giving them a "scrape value". You would immediately deduct the difference.

In fact, sometimes when you dispose of an asset, you get more for the scrape than you have left in depreciation- and you have to take that difference as a profit.

[ Parent | on HN ]
Re:Tell HN: Help restore the tax deduction for software dev ... by andrewlgood on Tuesday June 10, 2025 @08:28AM (#44236002)
For clarity, it is “scrap value”
[ Parent | on HN ]