cjbgkagh parent
Wow - that is absolutely insane. I had no idea that existed. Looked it up, section 174 amendment added in Tax Cut and Jobs Act 2017 coming into effect 2022.
Worse is that it was fully expected to be repealed before becoming law, but then got stuck in political quagmire. So here we are...
It makes sense that it was expected to be repealed, it’s a cash grab from small to medium businesses (SMEs) who are growing and are at least making some money. Traditionally tax law would provide breaks for this category as an ‘investment’ because they would get more tax later out of the bigger company these SMEs would turn into. It’s a major drag at already the most difficulty time for a fledging company and would have hit me badly had I stayed in the US.