4 ms·

The law has a call out that software development costs are all R&D now. So yes according to my understanding (as one of the signers) and those who have written

by jabart 4y ago

The law has a call out that software development costs are all R&D now. So yes according to my understanding (as one of the signers) and those who have written about this as well.

vlovich123 4y ago
I think this is flawed in both directions. Sure when you’re primarily building new stuff maybe the cost of that should be amortized. What happens if you’re just maintaining a product though rather than actually developing new stuff? That doesn’t feel like R&D effort.
- pclmulqdq 4y ago
  Maintenance of existing software doesn't count as R&D under this categorization. The IRS will have some helpful guidance available in June. You know, two months after the deadline.
  - vlovich123 4y ago
    Good luck figuring out how to do that accounting when teams are blended and all your workers are salaried.
    - pclmulqdq 4y ago
      Right now, adding features to an existing SaaS is looking a lot like maintenance work to me.
      - erik_seaberg 4y ago
        Great, now we have to ask tax accountants how long the Microservice of Theseus was officially in maintenance mode while we rewrote it.
reaperman 4y ago
When you say "as one of the signers" do you mean you signed the federal bill which modified this tax? i.e. you are a congressperson? Surely I'm misunderstanding you; your post history is utterly incompatible with any sitting congressperson. But I can't figure out what you meant by it.
- mikeyouse 4y ago
  Per the article, some 600 business owners signed a letter to congress asking for urgent relief; > As the House legislation is introduced, a grassroots effort is gaining momentum among software developers, with nearly 600 small business owners including Landsman and Bennett signing a letter to the Hill desks of House Way and Means Committee chair Jason Smith (R-Missouri) and Senate Finance Committee chair Ron Wyden (D-Oregon) on Tuesday morning, asking for “urgent relief” and warning that failure to bring back full R&D expensing may wipe out their companies. I assume that's what he signed.
  - reaperman 4y ago
    Oh, thank you so much. RTFA...
    - jdmichal 4y ago
      To be fair to you, I certainly read that but didn't associate that letter to the comment until mikeyouse pointed it out. A lot happened between reading the article and reading that comment.
      - jabart 4y ago
        Yeah now that I read that it's missing context. My bad.
taxopinion 4y ago
Yes. You could look at this as an indictment of the tax system, in that the plain language says what it says, but the IRS expects you to hire an account to make an "appropriate determination." No small business accountant is incentivized to give you creative opinions, they're just going to go with whatever is the most popular practice. They don't give a fuck how much tax you actually pay.

by jabart 4y ago

The law has a call out that software development costs are all R&D now. So yes according to my understanding (as one of the signers) and those who have written about this as well.

vlovich123 4y ago

I think this is flawed in both directions. Sure when you’re primarily building new stuff maybe the cost of that should be amortized. What happens if you’re just maintaining a product though rather than actually developing new stuff? That doesn’t feel like R&D effort.

pclmulqdq 4y ago
Maintenance of existing software doesn't count as R&D under this categorization. The IRS will have some helpful guidance available in June. You know, two months after the deadline.
- vlovich123 4y ago
  Good luck figuring out how to do that accounting when teams are blended and all your workers are salaried.
  - pclmulqdq 4y ago
    Right now, adding features to an existing SaaS is looking a lot like maintenance work to me.
    - erik_seaberg 4y ago
      Great, now we have to ask tax accountants how long the Microservice of Theseus was officially in maintenance mode while we rewrote it.

reaperman 4y ago

When you say "as one of the signers" do you mean you signed the federal bill which modified this tax? i.e. you are a congressperson? Surely I'm misunderstanding you; your post history is utterly incompatible with any sitting congressperson. But I can't figure out what you meant by it.

mikeyouse 4y ago
Per the article, some 600 business owners signed a letter to congress asking for urgent relief; > As the House legislation is introduced, a grassroots effort is gaining momentum among software developers, with nearly 600 small business owners including Landsman and Bennett signing a letter to the Hill desks of House Way and Means Committee chair Jason Smith (R-Missouri) and Senate Finance Committee chair Ron Wyden (D-Oregon) on Tuesday morning, asking for “urgent relief” and warning that failure to bring back full R&D expensing may wipe out their companies. I assume that's what he signed.
- reaperman 4y ago
  Oh, thank you so much. RTFA...
  - jdmichal 4y ago
    To be fair to you, I certainly read that but didn't associate that letter to the comment until mikeyouse pointed it out. A lot happened between reading the article and reading that comment.
    - jabart 4y ago
      Yeah now that I read that it's missing context. My bad.

taxopinion 4y ago

Yes. You could look at this as an indictment of the tax system, in that the plain language says what it says, but the IRS expects you to hire an account to make an "appropriate determination." No small business accountant is incentivized to give you creative opinions, they're just going to go with whatever is the most popular practice. They don't give a fuck how much tax you actually pay.