Comment by aarondf
3 years ago
> You think that all sw devs now are in R&D and not COGS?
Huh? I don't think that, that's literally what this law is doing. Moving all software developer expenses out of COGS and into R&D that must be amortized.
You're arguing what should be, and I agree with you. It should be COGS. If you go read the law (or... even the article) you'll realize that what should be the case, is not the case.
It has nothing to do with what I think!
> Since you’re so attuned to cash accounting let’s change up your example.
> I prepay $1mn in advertising cost for ads that will run over 5 years. I spent that cash now, but should I be able to expense that whole $1mn this year?
Umm if you're doing cash accounting, yeah. Haha. That's not the point you were trying to make though. If you're doing accrual accounting, no. That's a prepaid expense (asset) which changes to an expense over time as you incur it.
If you want to learn more about accounting, I have a website where I teach introduction to financial accounting topics at https://acct229.com. You might enjoy it!
I appreciate the offer, but this level of misunderstanding makes me believe I wouldn't get a lot of value out of you as a teacher.
My earnest advice to you is sometimes slow down and really think about what other people are saying.
Sorry but you are the one that needs to slow down and understand what people are trying to say. According to the tax law, it is now a stipulation that all Software Engineers (SWEs) are classified as R&D professionals. This is not a matter of personal interpretation or opinion.
Happy to schedule a call to better understand what you're saying. I'm pretty easy to find online.