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