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0 pointspaulcole11mo ago0 comments

But nobody’s forcing you to classify software developers as R&D.

0 comments

No, that's literally the Section 174 change. You now must count them as R&D.

The relevant paragraph from Section 174:

> (3) Software development

> For purposes of this section, any amount paid or incurred in connection with the development of any software shall be treated as a research or experimental expenditure.

https://www.law.cornell.edu/uscode/text/26/174

inChargeOfIT11mo ago

So that would include everything? - cloud/hosting expenses - system administrators/devops engineers and their laptops, workstations - project management software, office software, support, etc - project managers, designers, technical writers, qa engineers - software licenses, domain names, certificates, etc - internet bandwidth, data-centers, HVAC, backups

demosthanos11mo ago

What "in connection with" means is vague. I think a reasonably competent tax attorney could probably argue that the costs of running your production cloud serving existing customers don't count, but IANAL.

xhkkffbf11mo ago

What if some executive tweaks a "no code" tool? Technically, the name says that there's no coding involved.

zdragnar11mo ago

Presumably that still counts as "developing software"- the regulation doesn't mention "coding" at all.

xhkkffbf11mo ago

A fair point.

Or is it "using software"?

A person typing an essay with a word processor in doing more work than many of the users tweaking no code software.

1 more reply

mring3362111mo ago

what if you don't call it "software development"?

how about "business process mechanization"?

brookst11mo ago

At that point you’re so into tax fraud that you light as well call them “postage and shipping”

mring3362111mo ago

OMG, I can't believe how prudish HN commenters are!

Have you seen who's leading the most powerful orgs these days?

Have you seen what's going on?

"business process mechanization" is a fair description of what we do and probably would be just fine, tax-wise

nsxwolf11mo ago

Then you risk going to jail.

acedTrex11mo ago

I mean sometimes fraud works, sometimes it doesnt.

croes11mo ago

How would that help? R&D developers helped saving taxes, now they don’t.

Classifying them as non R&D doesn’t help saving taxes again.

j / k navigate · click thread line to collapse

0 comments

demosthanos11mo ago

No, that's literally the Section 174 change. You now must count them as R&D.

The relevant paragraph from Section 174:

> (3) Software development

> For purposes of this section, any amount paid or incurred in connection with the development of any software shall be treated as a research or experimental expenditure.

https://www.law.cornell.edu/uscode/text/26/174

inChargeOfIT11mo ago

demosthanos11mo ago

xhkkffbf11mo ago

What if some executive tweaks a "no code" tool? Technically, the name says that there's no coding involved.

zdragnar11mo ago

Presumably that still counts as "developing software"- the regulation doesn't mention "coding" at all.

xhkkffbf11mo ago

A fair point.

Or is it "using software"?

A person typing an essay with a word processor in doing more work than many of the users tweaking no code software.

1 more reply

mring3362111mo ago

what if you don't call it "software development"?

how about "business process mechanization"?

brookst11mo ago

At that point you’re so into tax fraud that you light as well call them “postage and shipping”

mring3362111mo ago

OMG, I can't believe how prudish HN commenters are!

Have you seen who's leading the most powerful orgs these days?

Have you seen what's going on?

"business process mechanization" is a fair description of what we do and probably would be just fine, tax-wise

nsxwolf11mo ago

Then you risk going to jail.

acedTrex11mo ago

I mean sometimes fraud works, sometimes it doesnt.

croes11mo ago

How would that help? R&D developers helped saving taxes, now they don’t.

Classifying them as non R&D doesn’t help saving taxes again.

j / k navigate · click thread line to collapse