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New Tax Rule is Terrible for Software Industry!

onlycfo.io · 1,568 words · saved by 1 readers

⚠️ I need you to share this post with founders/CEOs, investors, anyone else who will listen. This new tax rule that has gone into effect really hurts startups and the entire software industry. There is still a small chance it can get repealed. Share One of the best parts about being at a venture-backed software company is that we have been able to basically ignore income taxes because we lose so much money in the early days 🤣. In all seriousness, the significant investments needed upfront in software is how the model typically works. But a new tax rule that went into effect last year (for tax returns being filed this year) is going to cause lots of pain for software companies. A lot of folks still don’t know about this new tax rule or it’s negative impact on innovative companies. The new tax rule (Section 174) will cause cash burning startups to pay income taxes and greatly increase income tax bills for profitable software companies. Upgrade to paid IRS rule Section 174 requires compa

⚠️ I need you to share this post with founders/CEOs, investors, anyone else who will listen. This new tax rule that has gone into effect really hurts startups and the entire software industry. There is still a small chance it can get repealed. Share One of the best parts about being at a venture-backed software company is that we have been able to basically ignore income taxes because we lose so much money in the early days 🤣. In all seriousness, the significant investments needed upfront in software is how the model typically works. But a new tax rule that went into effect last year…

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