software as capital

Rakesh Bhandari bhandari at phoenix.Princeton.EDU
Sat Aug 28 14:47:30 PDT 1999

Jordan, is the decision to expense--rather than capitalize--software tax related? That is, expensing would reduce the amount of taxes paid over the three year span in your helpful example? Or do taxes paid work out to be same either way just like profits? I imagine these decisions over exp. vs cap. are made with the tax man in mind. Is it possible that profits would not be robust at all--certaintly they would not justify the bull market--if not for creative tax avoidance? --rakesh

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