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>> Now the company must pay taxes on 800,000 of profit because "R&D salaries," which includes software devs, must be amortized over five years. Obviously the co

>> Now the company must pay taxes on 800,000 of profit because "R&D salaries," which includes software devs, must be amortized over five years. Obviously the company has no wherewithal to pay, given that they made a million and spent a million. So stop claiming software development as R&E and just say they're regular salaried employees. The government never should have been paying them in the first place!

aarondf 4y ago
It's not up to you to categorize them one way or another. This law mandates that they are r&d and thus amortized.
- phkahler 4y ago
  No, no it doesnt.
  - aarondf 4y ago
    I'm not sure how to convince you other than telling you to read the law (or the article.) That's why everyone is freaking out about this
  - aarondf 4y ago
    > Under new Section 174(c)(3), software development costs are treated as R&E expenditures and must also be capitalized and amortized in accordance with the new rules. https://www.grantthornton.com/insights/alerts/tax/2022/flash/irs-issues-procedures-on-new-section-174-re-compliance https://www.grantthornton.com/insights/alerts/tax/2022/flash...