To be clear I would love for this to be the case. I'm just curious though how you would justify saying a developer's salary is not a software development expense?
You need to talk to an actual accountant or tax lawyer. The key verbiage is "for the purposes of this section", and the language which optionally supersedes it in other sections (notably section 162) in combination with several court rulings.
You really can't just read individual sections of the tax code and expect to understand how the thing works as a whole.
I started this discussion after hearing about this from my CPA, who works for a large, multi-state firm.
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?
To be clear I would love for this to be the case. I'm just curious though how you would justify saying a developer's salary is not a software development expense?
You need to talk to an actual accountant or tax lawyer. The key verbiage is "for the purposes of this section", and the language which optionally supersedes it in other sections (notably section 162) in combination with several court rulings.
You really can't just read individual sections of the tax code and expect to understand how the thing works as a whole.
I started this discussion after hearing about this from my CPA, who works for a large, multi-state firm.
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?
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If they paid an outsourcing company, not direct hire through payroll, then there is no payroll?