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The title is about R&D, but because of Section 174 changes, this applies to all software development, whether "research" or not. If you're making a dumb app, yo
by lkesteloot 1y ago
The title is about R&D, but because of Section 174 changes, this applies to all software development, whether "research" or not. If you're making a dumb app, you can't deduct the expenses (including salaries), you have to capitalize them. It's brutal for a small company.
- walterbell 1y agoIn 2022, U.S. tax law kept LLMs (OpEx) deductible and made engineer salary (now CapEx) amortizable over 5 years. In 2027, human and LLM net expenses will be equivalent again, on a 5y rolling deduction basis. Robots remain CapEx. Previous discussion: https://hn.algolia.com/?query=section%20174 https://hn.algolia.com/?query=section%20174
- kgwgk 1y ago> The title is about R&D, but […] applies to […] development, […] "research" or not. In R&D there are R and D.
- thayne 1y agoNot just small companies. Those changes are almost certainly a contributing factor to the massive layoffs among tech companies.