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The answer is you spend part of the 10% profit on a CPA or tax lawyer. The legal deductions, they are so many. I've run a bootstrapped software business for 14
by idlewords 4y ago
The answer is you spend part of the 10% profit on a CPA or tax lawyer. The legal deductions, they are so many. I've run a bootstrapped software business for 14 years and I never even heard of this one until your post.
- itake 4y agoHow do you deduct payroll / dev costs?
- idlewords 4y agoMe personally? The same way any small business does; I forget the exact line number but the upshot is you tell the IRS who you paid and subtract that amount from gross revenue.
- itake 4y agoI think what OP is saying is that all software development costs must be amortized now. Most small businesses are not developing their own software and would not be impacted.
- idlewords 4y agoWhat I am saying is that this is a bad topic to take message board advice on.
- PaulDavisThe1st 4y ago> you tell the IRS who you paid unless they are overseas and have no US tax liabilities.
- moneywoes 4y agoIs there a list of these deductions somewhere for those who can’t afford a cpa or tax lawyer
- idlewords 4y agoThe IRS documentation is pretty clear, and there's a lot of free material online that goes into detail. I'd recommend just starting with the IRS docs for 1040 Schedule C.
- nightpool 4y agosee https://news.ycombinator.com/item?id=34628269 https://news.ycombinator.com/item?id=34628269, this caught everybody by surprised because they assumed Congress would fix their mistake before tax season but it's new this year and it's seemingly pretty devastating. see some replies from actual CPAs in the thread.