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US tax code Section 174 threatens to bankrupt small software businesses

5 pointsby arvidkahlabout 2 years ago

1 comment

arvidkahlabout 2 years ago
Congressional inaction on Section 174 means huge, unexpected tax bills for companies that can’t bear the loss of R&amp;E deductions. Instead of claiming 100% this year, it needs to be amortized over 5 years or more.<p>Self-funded SaaS businesses who can&#x27;t easily pay 4x their current tax bill will go bankrupt from this — a tax provision that was never meant to be used.
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