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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 jncfhnb on Tuesday June 10, 2025 @09:27PM (#44243334)
Salary for building assets generally are capitalizable. Construction companies have a special carve out because they typically are hired to build the assets for someone else and are paid for the completion of the construction work.

A factory worker building a product to be sold is capitalized into inventory

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Re:Tell HN: Help restore the tax deduction for software dev ... by procaryote on Saturday June 14, 2025 @10:43AM (#44276732)
The product can be capitalised into inventory. The factory worker's salary is just a cost.

The key thing here is that while you generally are expected to and allowed to consider a produced good an asset, it's not assumed that paying someone salary translates immediately into an asset... unless it's software under this new rule for some reason

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