1,252 karma · joined October 29, 2008
rgd@hey.com
Honestly my main reason for starting this discussion was a) to see if anyone else's professional advice (e.g. from a CPA) was different, and b) to hopefully drum up awareness so maybe in some roundabout fashion this gets changed.
My other business has a different CPA that I am waiting to hear from in terms of their advice/interpretation of this.
The articles I linked in the OP is from a multi-national CPA firm.
I am basically here hoping someone else has professional advice from a CPA that contradicts what I've been told since I would love for this to be completely not how this is working.
So I just want to make sure, are you saying you heard from your CPA/tax attorney that this is not how this works? Or are you just basing that on your read of it?
I think you should review what I linked or talk to a CPA because this this indeed the change this year, and it is indeed nonsensical.
This is not the same thing as the R&D tax credit.
I'm more just frustrated at the need to do any of it, as the underlying principle is so anti-small-business. Why are we making anyone in the software field jump through all these extra hoops now just to keep their company viable?
(1) except as provided in paragraph (2), no deduction shall be allowed for such expenditures, and
What that means is, you can't take it as a normal business expense deduction, except by following (2) which is to amortize it.
It is not a choice anymore, if it is software dev, it's R&E now. They added a specific callout for software development only right to the tax code.
Example: if you are a restaurant and you buy an off the shelf point of sale software, this doesn't apply. If you are in the business of making a point of sale software to sell to restaurants, or your restaurant chain develops its own point of sale software internally, it applies to all costs related to the development of that software now.
> Well, did you spend the $90k on W2 salaried employees, or to a vendor?
It wouldn't matter, if the expense is related to the business of developing software, it counts now.
These rules were established as part of the 2017 tax bill and take effect this year.
FTA: "The short answer is that the conclusion of the current congressional session with no action on this issue means required capitalization of R&E expenditures remains applicable to the 2022 tax year."
1) You can no longer take it all in the single year, and 2) All software development is now R&E automatically, no exceptions.
Note that this is separate from the R&E tax credit that you can also claim, that's a different deal in addition to this.
I've been working on a little side project which is a version of Wordle that you can play against others. Choose a word, then take turns guessing and see who gets it first. The twist: any letters you use in your own guess are revealed to the other player if they are in your secret word!
You can play in your browser here:
https://battlewords.riley.dev/
There's also an Android app available:
https://play.google.com/store/apps/details?id=dev.riley.batt...
Unfortuantely, Apple has rejected the app as being too much of a Wordle copycat.
The tech stack is Expo/React Native on the front end, and then Firebase (Hosting, Functions and RTDB) on the backend.
If you challenge a Random Opponent and we don't find someone to play against you within 2 minutes, we'll have a Bot play against you so you can always play a game if you want to.
My friend group has been playing it for a few days now and finding it fun, but let me know what you think!
Heroes of the Storm builds auto generated from pro matches. Just a fun little thing that was useful to me, no current long-term plans to turn it into a business or anything.
It's pretty ambitious for a small team, but we did a successful Kickstarter campaign previously and we're keeping the scope reasonable. We've held a few successful stress tests already and Closed Alpha starts in a couple of weeks.
My guess is the vast majority of people appreciate the convenience of automatically getting a photo of themselves on a ride. To pull out another example of putting the tracker in the ears hats for kids, please tag my kid every way you can while we're there. My fear of losing them in a busy park far outweighs my concern that you know I took them on the Pooh Bear ride.