I will probably write about Section 174 depreciation changes and the impact on small software companies and startups in the future, but in the meanwhile, Michele Hansen is organizing a letter to Congress to encourage them to modify policy sensibly. ssballiance.org

The very short version of the issue is a 2017 change in an obscure part of the tax code that was essentially ignorable by many small companies caused all software development expenses, including salaries, to need to be depreciated and not expensed.

This will cause those businesses tax accounting to show "artificial" profits in the first ~4 years of the adjustment period, beginning this in tax year 2022, and then they will be taxed on those virtual profits *immediately* despite them not corresponding to cash actually earned.

If you haven't talked to your accountant about this already and employ engineers, talk to your accountant *immediately* because the sticker shock needs to be seen to be believed.

Sign the letter here! Deadline is midnight Sunday 4/16 (tomorrow) ssballiance.org

★ Just published a new episode of Software Social: The letter to Congress has been sent! Here's what comes next. Listen: share.transistor.fm/s/1109db8b

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★ Just published a new episode of Software Social: Can the R&D Tax Credit Offset the Section 174 Changes? Listen: share.transistor.fm/s/3f86b808

★ Just published a new episode of Software Social: Section 174 Update: Sign the new letter! Listen: share.transistor.fm/s/e0c8ef8e

★ Just published a new episode of Software Social: ADHD + Entrepreneurship: A Conversation with Jesse J. Anderson, aka ADHD Jesse . Listen: share.transistor.fm/s/2772c921

★ Just published a new episode of Software Social: Side Projects as Insurance Policies. Listen: share.transistor.fm/s/7682e9fd

★ Just published a new episode of Software Social: 174 ALL-POINTS BULLETIN. Listen: share.transistor.fm/s/cafe1d6e

★ Just published a new episode of Software Social: 174 Update: Call Congress! Now! Listen: share.transistor.fm/s/1ebe6b74

★ Just published a new episode of Software Social: It passed the House! Now what? Listen: share.transistor.fm/s/512ae885

More podcasts should have a season theme like tv shows. I’m really obsessed with listening to the bootstrapped founder lately as soon as it comes out because the founder is building a new SaaS and talking about the journey.

★ Just published a new episode of Software Social: Hey, why don't you join us? Listen: share.transistor.fm/s/1b704348

★ Just published a new episode of Software Social: Colleen & Michele are back on the mics! (For today, at least). Listen: share.transistor.fm/s/53465ca1