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I thought employee wages were always deducted. Is that not the case ?
by Uw7yTcf36gTc 3y ago
I thought employee wages were always deducted. Is that not the case ?
- PaulDavisThe1st 3y agoUnder the new section 174, software developer salaries are no longer expensable.
- patmcc 3y agoJust as an aside - as a general accounting principle, no, wages are not always deducted. The easy example is a car company, like Ford. If they buy a car factory, that is a capital asset, and the cost needs to be amortized over x years. If they decide to instead BUILD a car factory...they still end up with a capital asset, and the costs (including wages) need to be amortized over x years. In most cases this is what companies want - they'll have revenues over x years and matching costs over x years is generally better for everyone.