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.
It also applies to e.g. saas used for software development, which never would be depreciated over time previously. So your paid GitHub account? Amortize it over 5 years.
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 through that medium.
Also, I kinda wrote a whole book with scripts (for customer interviewing)… if I didn’t provide scripts, it just wouldn’t be true to my work!
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.
The challenge at the moment is to get Speaker Johnson to put it on the floor and give him confidence that he has the votes. Critical that everyone contacts their Representative next week to ask them to ask leadership to do so, especially if their Representative is a Republican.
Your CPA might be referring to rules for R&D tax credits, which covers a much, much more narrow scope of business activities. R&D credits cannot offset the impact of the amortization rules.
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.
Yeah… that’s why this is still far from a guarantee, even though it’s a very positive development. This could very well still fall apart like last time.
Everyone, call your Reps and ask them to tell leadership to support the tax deal!
