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Unfortunately, this doesn’t erase the impact. This applies beyond salaries to all resources used for what 174 considers R&D. Servers, software, the desk chair y
by mjwhansen 3y ago
Unfortunately, this doesn’t erase the impact. This applies beyond salaries to all resources used for what 174 considers R&D. Servers, software, the desk chair you sit on to do development —- all have to be amortized under 174.
- gavinhoward 3y agoThose are physical things that had to be amortized anyway, and I had planned for that.
- w4 3y agoThat's not correct through '27: https://tax.thomsonreuters.com/en/glossary/bonus-depreciation https://tax.thomsonreuters.com/en/glossary/bonus-depreciatio... It also applies to e.g. saas used for software development, which never would be depreciated over time previously. So your paid GitHub account? Amortize it over 5 years.
- gavinhoward 3y agoDon't use none of that, so not worried.
- volkk 3y agowhat about as a sole proprietorship?
- mjwhansen 3y agoStill have to amortize
- icedchai 3y agoWhat if I'm doing mostly "maintenance and operations", not "R&D"? I still need those servers and software...
- w4 3y agoYou pro-rate it based on usage for R&E vs. usage for "maintenance."