And this right here is the difference between theory and practice.
Because in theory sure.
Though previously there was the far more profitable and easy to deal with theory of building an actual asset of large value (monetized via stock/equity) while treating the expenses to do it as straightforward business expenses with no amortization to be a PITA, and the IRS was willing to go along on that.
In practice, this is exactly how you run your startup into a wall at 100 mph while you bounce payroll checks and end up in a morass of legal trouble. Because cashflow absolutely matters, and startups and small businesses rarely can just get ‘free’ debt at a moments notice to smooth it all out. Even large ones are having more difficulty than ever.
Call it whining all you want - it’s a significant concern partially driving market behavior. Remote work also meaning outsourcing is back on the table being another.
Because this was all due to a change of the rules on existing behaviors, and created a new capital asset which previously didn’t need to be recognized.
And because you seem to be saying ‘suck it up’, which of course sure whatever. Business is what it is, and folks get what they get.
But of course what is going to happen is the related companies are just going to fire some people/lay them off, or go bankrupt and then do that to everyone.
I don’t actually care - I pivoted in a way it benefits me several years back - but what else does anyone expect to happen?
Then the whining and finger pointing happens of course on the state of the labor market, and no one ever points one back to themselves. shrug
Because in theory sure.
Though previously there was the far more profitable and easy to deal with theory of building an actual asset of large value (monetized via stock/equity) while treating the expenses to do it as straightforward business expenses with no amortization to be a PITA, and the IRS was willing to go along on that.
In practice, this is exactly how you run your startup into a wall at 100 mph while you bounce payroll checks and end up in a morass of legal trouble. Because cashflow absolutely matters, and startups and small businesses rarely can just get ‘free’ debt at a moments notice to smooth it all out. Even large ones are having more difficulty than ever.
Call it whining all you want - it’s a significant concern partially driving market behavior. Remote work also meaning outsourcing is back on the table being another.