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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 kelnos on Tuesday June 10, 2025 @01:47PM (#44239417)
If I hire a bunch of people to build me an apartment building, I deduct the full cost of their salaries in the year I pay them, even though once they build the apartment building, I get the value of that work over the following years.

How is that any different from hiring a bunch of people to write some software, that I then get the value of over the following years?

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Re:Tell HN: Help restore the tax deduction for software dev ... by kgwgk on Tuesday June 10, 2025 @02:37PM (#44239901)
> If I hire a bunch of people to build me an apartment building, I deduct the full cost of their salaries in the year I pay them

That’s not how it works in general (there are exceptions though): https://www.law.cornell.edu/cfr/text/26/1.263A-1

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