Comment by Filligree

3 years ago

Yes, but according to this law you're not allowed to do that; you have to amortize it over five years.

That seems to be the rub. It doesn't differentiate between different reasons and business models for writing software: Software as wealth, and software as pure expense.

It's also pretty harsh on a business that's just plain unprofitable. The laws should be arranged so that if you start a business and it's a flop, but you have no debts, you can walk away pretty much unscathed.