Post #2604869
2026-05-08 17:36 UTC
@atpfm@mastodon.social @siracusa@mastodon.social
Ep. 690 you mention reasons for software development being capex/opex. Mostly right that the lawyers in the building were deciding whether what you were doing qualified as one against the other, but they were themselves reacting to Section 174 changes. More if you aren't already asleep:
https://news.bloombergtax.com/tax-insights-and-commentary/new-irs-r-e-rules-risk-stifling-software-innovation-for-startups
Replies (1)
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@andrew@esq.social 2026-05-08 17:41
@atpfm@mastodon.social @siracusa@mastodon.social tl;dr: The tax code has vacillated back and forth between treating development of new features and "maintenance activities" differently for purposes of expensing. That matters, because its the difference between taking $xyz paid to developers off your profits this year and having to amortize $xyz over 15 years.