Comment by klipt
6 months ago
But most employee salaries are deductible right? If you hire a chef at your restaurant, you aren't depreciating their salary.
Doesn't that make software engineers one of the few employees with much worse tax treatment?
6 months ago
But most employee salaries are deductible right? If you hire a chef at your restaurant, you aren't depreciating their salary.
Doesn't that make software engineers one of the few employees with much worse tax treatment?
I think that is the simplest and best analogy I have read so far in the comments.
The chef doesn't create a meal once that you can sell for the next 10 years though. You pay him for time X, he makes a meal, you sell that meal.
That's fundamentally different from regular software development outside of agencies where there is no direct relationship. Software development is closer to an investment than an expense.
Amortization sucks in general, yes, because the money is gone and it doesn't affect your taxes to the same amount, but that's not different for any company doing manufacturing or anyone needing specialized tools or vehicles that cost significant amounts.
When someone pays for labor to build an apartment building they profit off for decades, do they amortize that labor?
3 replies →
> The chef doesn't create a meal once that you can sell for the next 10 years though. You pay him for time X, he makes a meal, you sell that meal.
What if the chef invents a new signature dish that makes your restaurant famous for the next 10 years?
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