News for hackers. Stuff that matters.

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 fuzztester on Monday June 09, 2025 @07:19PM (#44230701)
>Depreciating means that if you pay an engineer $200k in a year, in tax-world you only had $40k of real expense that year, even though you paid them $200k.

what happens if an engineer leaves after the first year, or at any other time?

what happens to the calculations then?

[ Parent | on HN ]
Re:Tell HN: Help restore the tax deduction for software dev ... by kgwgk on Tuesday June 10, 2025 @05:14AM (#44234398)
Nothing. The calculation has nothing to do with people. It’s about what the company spends - and some kind of spending is capitalized depending on what activity it was related to and what the output was. That doesn’t change if the employee that you paid a salary to leaves, or the company that you bought materials from disappears, etc.
[ Parent | on HN ]