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Exactly. And I do think the truth lies somewhere in the middle - some software development creates capital assets, but lots does not. And either way it's very
by patmcc 3y ago
Exactly. And I do think the truth lies somewhere in the middle - some software development creates capital assets, but lots does not.
And either way it's very painful to change the rules entirely in a single tax year, especially for small businesses. FAANG companies will weather this either way, but it could kill small software businesses.
- s1artibartfast 3y agoagreed. It is quite backbreaking if you dont have a huge bucket of money. One alternative if it must be treated as a capital asset is to allow accelerated/immediate depreciation for small firms and individuals. I can see the point that for large firms like with diversified R&D portfolios, development, on average, results in creation of capital assets. For small firms, it is absolutely unclear that the product has any durable value at all.