US tax code Section 174 threatens to bankrupt small software businesses
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Re: US tax code Section 174 threatens to bankrupt small software businesses
#2Congressional inaction on Section 174 means huge, unexpected tax bills for companies that can’t bear the loss of R&E deductions. Instead of claiming 100% this year, it needs to be amortized over 5 years or more.
Self-funded SaaS businesses who can't easily pay 4x their current tax bill will go bankrupt from this — a tax provision that was never meant to be used.
Re: US tax code Section 174 threatens to bankrupt small software businesses
#3Congressional inaction on Section 174 means huge, unexpected tax bills for companies that can’t bear the loss of R&E deductions. Instead of claiming 100% this year, it needs to be amortized over 5 years or more. Self-funded SaaS businesses who can't easily pay 4x their current tax bill will go bankrupt from this — a tax provision that was never meant to be used.
This is an issue that personally affects you I recommend searching hn for threads on the issue. There's been some Hardy discussion and some alternative takes