A YNAB Success Story (and Taxes)
Beginning Balance
00:00
The Importance of Inventory in Software Development
The company's main expense is its development costs, which are only deductible at 25% of income. If you pay a software developer $100,000 for five years, 80,000 of it goes to the bottom line and then passes through to the owner as taxable income. "You're effectively incurring sort of like a, there's like a massive premium that you're paying on every dollar," he says.
Transcript
Play full episode
