311–320 of 369 posts
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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 you sit on to do development —- all have to be amortized under 174.
what about as a sole proprietorship?
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Thanks for linking to SBBAlliance and for the kind words! But seriously, thank me when it’s fixed. (Counting chickens before they’ve hatched, etc etc)
Sounds promising - https://www.cnbc.com/2024/01/19/bipartisan-tax-bill-clears-k... The strong bipartisan showing in the House Ways and Means Committee adds more momentum to the proposed changes, which include allowing the immediate expensing of research and development costs.
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But it is difficult to fire them which is a big problem for tech companies where hiring and firing are common
It's very easy to fire in Switzerland. The notice periods are usually longer than in North America, but everyone having unemployment insurance where they are paid ~80% of their salary for up to 2 years makes is not such a big deal.
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This is correct. Since it was basically accounting sleight-of-hand to get a better score from the Congressional Budget Office, they knew this would be disastrous if it took effect, and were widely expected to repeal it before it did. That deal, which also paired fixing it with the child tax credit, fell apart in December 2022.
I think of that every time someone proclaims that some time bomb like that will force the Congress to make a deal. That’s the instinct of a bygone era and I no longer feel safe counting on it.
Everyone, call your Reps and ask them to tell leadership to support the tax deal!
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But it is difficult to fire them which is a big problem for tech companies where hiring and firing are common
It's very easy to fire in Switzerland. The notice periods are usually longer than in North America, but everyone having unemployment insurance where they are paid ~80% of their salary for up to 2 years makes is not such a big deal.
That's a big problem for US based tech companies
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>a script to follow Going on a tangent here, but I always hated this idea of reading off a script to try and lobby politicians. If I were the politician, I would ignore all such communiques as indoctrinated spam.
Totally fair! I provided a script because many people have never contacted Congress before and might not know what to say, so it’s a way to make them more comfortable with the idea. They don’t necessarily have to use it. Now for tweets, it’s important that each tweet is unique. Otherwise it’s clearly coordinated/automated. But as a casual scroll of Twitter shows, many people hate comfortable expressing themselves thr…
Take action and sign up for the Small Software Business Owners Association newsletter and petitions to the government: https://ssballiance.org/ Michele Hansen is doing an incredible job here and should be recognized for it. Latest news was sent yesterday: Republicans and Democrats finally struck a tax deal that includes a partial fix for Section 174. It includes expanding the Child Tax Credit, a key Democratic priori…
Thanks for sharing this, called my representatives.
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You are mixing up EU and Switzerland, employment laws are very different (and each EU state has its own, but generally much more protective of employees than Swiss ones). One of the reasons Google has long term big center in Zurich, if grass would be greener (since cheaper it is) in say Germany or Austria they would build there
> One of the reasons Google has long term big center in Zurich, if grass would be greener (since cheaper it is) in say Germany or Austria they would build there I don't think Google has an office in Zurich because it's cheap. It's mostly due to a lot of talent available (ETHZ, EFPL, etc).
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Further, R&D is at best a bet, as any of us who has ran a technology business well know. It’s not at all clear one will be able to take the research to market and monetize the R&D investment. Doing that is called founding a successful company.
And if the investment pays off, so that the R&D creates revenue in future years after it's already been paid for, then it will result in actual taxable profit in those future years . It seems like the IRS is trying to speculatively tax unrealized future profits here, and that's pretty unconscionable.
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You're understanding it correctly. The "answer" is that you either take VC investment, borrow money to pay the taxes (in this economy??), or go out of business.
Going into business is now a liability for me. What? Why is all software work counted this way? Why software ? Shouldn't I be paying taxes later once I've made money? This is like paying taxes on unrealized gains - I can't pay those taxes - I haven't made any gains!
Then Congress did not roll it back. So here we are.