> This has a hugely negative impact for early-stage startups, contract research firms (i.e. SBIR companies), and independent software developers.
Yeah, but that doesn't make it unfair, no? The whole "develop it today, pay taxes on it later" effect SaaS used to have was just a loophole software enjoyed for a long time. Developing anything is investment, and tax code generally requires that to be amortized so you can't deduct it all year 1. Congress just closed the loophole for software.
Yeah, but that doesn't make it unfair, no? The whole "develop it today, pay taxes on it later" effect SaaS used to have was just a loophole software enjoyed for a long time. Developing anything is investment, and tax code generally requires that to be amortized so you can't deduct it all year 1. Congress just closed the loophole for software.