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But aren't you deriving value from what they developed in the first year? I mean, maybe that's my mistake. If they spent a million, made a million, and are now
by analog31 4y ago
But aren't you deriving value from what they developed in the first year? I mean, maybe that's my mistake.
If they spent a million, made a million, and are now back to square one, it would make more sense to not amortize the investment because it's not an investment.
- Filligree 4y agoYes, but according to this law you're not allowed to do that; you have to amortize it over five years.
- analog31 4y agoThat seems to be the rub. It doesn't differentiate between different reasons and business models for writing software: Software as wealth, and software as pure expense. It's also pretty harsh on a business that's just plain unprofitable. The laws should be arranged so that if you start a business and it's a flop, but you have no debts, you can walk away pretty much unscathed.