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> tl;dr - previously companies could choose 1 or 5 years to amortize Just seeing if I got this right. A McDonalds' flipper's and a SWE's wage expense now works
by rightbyte 2y ago
> tl;dr - previously companies could choose 1 or 5 years to amortize
Just seeing if I got this right. A McDonalds' flipper's and a SWE's wage expense now works the same tax wise?
I mean, most of the R in RnD is abuse for tax reasons when applied to SWEs. I get that it is bad for our wages, but is the change 'fair' for some definition of fair?
- jncfhnb 2y ago> Just seeing if I got this right. A McDonalds' flipper's and a SWE's wage expense now works the same tax wise? Exactly the opposite A burger flipper is the cost of doing business. The value of the burger flipper is used immediately and so the expense is recognized in that year. Software used to be treated like that. Now they say that software development is more like building tools and developing assets. So you should recognize that expense’s value across a handful of years.
- jen20 2y agoI haven't paid enough attention here, but how do system administrators fit into this?
- verdverm 2y agoIs it a deductible repair, if you aren't sure probably amortize? Ask an accountant. Either way you need to be meticulous with record keeping for hours spent on tasks, or default to amortize It gets interesting when you think of responding to an outage. Are you "repairing" something that is broken, or "fixing" a bug and improving the software? It's hard to analogize what we do to the historical context in which the laws were written.
- jncfhnb 2y agoIf they’re not “developing” anything then it’s likely expenseable.
- verdverm 2y agoAre you adding new machines to scale up, are you deploying logging to improve visibility, are you updating packages (and thus improving the factory?) There is a bunch of grey zone where people are not sure what to do
- rightbyte 2y agoOh. Ye I need to read up on this.