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It’s not a capital expense because you can’t sell it! Literally no one is going to buy your garbage code, ~ever. It has zero value; in fact it has negative valu
by grfjurrcv 2y ago
It’s not a capital expense because you can’t sell it! Literally no one is going to buy your garbage code, ~ever. It has zero value; in fact it has negative value — you must maintain it or risk security issues etc.
The idea that it’s comparable to capital expenses in other industries is ridiculous. Approximately no one buys code. They might buy working businesses that happen to use code for something or another. They don’t buy code.
(If you are literally selling code, sure, you can call it a capital expense. That’s approximately nobody though).
- dragonwriter 2y ago> It’s not a capital expense because you can’t sell it! Yes, you can sell IP like code copyrights. Like a factory, you generally won't if you are able to make money with it, and also like a factory, there’s often a limited pool of buyers if you need to resort to it.