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I think the obvious implication is that software development is expensive, ongoing and tends to result in relatively short term ROI, and therefore the amortization schedule of 5 years increases the likelihood smaller business will never collect most of it, while larger business that can absorb more up-front costs will be able to collect it pretty easily.

jncfhnb
That is not an argument for tax treatment of whether something is an asset
twodave OP
I wasn’t trying to make that argument, but I were I would argue that software itself is more like a liability, or, at the most, a current asset[0]. Source code has no inherent value, and in fact the more you have the more expensive it is.

[0] https://www.investopedia.com/terms/c/currentassets.asp

jncfhnb
That interpretation is deeply removed from how accounting works, but even if it were a current asset it would still not be an expense
twodave OP
Yeah, I agree it doesn’t fit well in any of the usual accounting boxes. But I think that’s the point, right?
jncfhnb
Building tools or products is clearly an investment

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