accounting firm
IRS Proposes New R&D Tax Rules for Internal-Use Software

Businesses of Wilmette – to use Software or not to?!

If until now, many of you were using all sorts of projects to regain access to your rightfully owned products or services, you may start from the beginning of 2015 to be taxed upon that sort of software (if used). Citizens from cities as Wilmette have shown their shock and disappointment when it comes to the tax, but have also figured out that no good deed comes from using software without a safe monitoring by the authorities. No matter how much security you manage to put on your software, ingenious people will always find a way to hack into it, and save themselves from returning anything to you, with the use of that software in particular.

First of all, we all must be conscious about the fact that businesses have expanded enormously over the last years, the last decade making us feel old and new to all the latest apparitions when it comes to technology. Wilmette is no stranger from this sudden evolution as well, its citizens understanding how fast everything is moving especially when it comes to computers, telephones or banks. But what do the owners of small shops have to do in a situation like this one? Do they sell everything to the big shots or do they try and still stand on their own 2 feet, even when the great companies afford expensive security and cashing out systems and the small owners have to do everything “old school”?

In a situation like the one met in Wilmette, more than one would be compassionate about the small businesses, and would actually be grateful that the R&D Tax Rules have been proposed, since only the big guns can afford software system that recovers projects, being also, a great part of the thriving local economy.

No matter what the final decision will be, with or without tax, thus with or without software for some that simply cannot afford to pay the taxes that are lately rapidly growing, the economic and technical risk goes down, while the recovery of the assets will be given in a much simpler manner, using the resources exactly how they were intended in the first place.

On the bright side for those who still do not have to pay taxes, the software is designed especially for administrative functions, as the support services functions, the human resources management or the accounting field of the company, making its security still safe for now for small businesses. However, the R&D tax will be limited to the software that is given to general and administrative executions.

New regulation on the taxes also may have negative effects on people that only use the products coming out of the small businesses (either from a simple market, shoemakers, florists, handcrafters and other more), those being obliged to introduce bigger prices when it comes to their final products in order to have help in paying their taxes and also not go out of business.

Be that as it may, Wilmette will still remain in doubt when it comes to wondering about whether to accept the software that brings to lots of shop owners benefits, but also pay a significant tax, or do their businesses old school, with small accounting services, and also restraining themselves from paying a tax that may or may not be useful in a time of recession. Economy is still a great mystery for us all and until we find a resourceful accountant or partner that helps us through our day to day financial crisis, we will still remain in doubt.

Comments

Post Comment

Your email address will not be published. Required fields are marked *