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Comment by rietta

3 years ago

Ugg. Now I got to figure out how this impacts our small business this year. I just e-mailed our CPA so he would be able to look over the changes after their busy season ends. I hope there is some sort of threshold because as a small business some years we barely break even after paying salaries. I mean profit under $10k remaining to role over into January. I am driving a 16 year old Honda Civic. Not living a life of luxury over here :-/

6 comments

rietta

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enginaar  3 years ago

i'm in a similar situation building software and my understanding is while i cannot write off my expenses 100% because i'm building an asset, if you're operating business as usual, maintaining existing software/service then it's 100% expense.

  • rietta  3 years ago

    My wife and I am getting a refund this year. Getting beat up in the business by inflation, all costs going up, and cutting income in half is not a great tax strategy.

    It is going to make me push tougher time code tracking onto my developers. Fixing a bug is different than feature work is different than legit R&D that might qualify for the actual R&D tax credit. As if software devs love doing time sheets (not!) :-/