My wife and I own a software business, we are the only employees (but sub work out sometimes).
The business makes money from many customers by selling our software.
For the last 3 years, I have worked developing a new software for the business, but I have not been paid for any of that time (in the future it will sell and turn a profit in which I will be taxed on that income).
This year alone, my billable hours for this project are worth $367,500; in which I am spending my time, but not yet being paid.
Is this a considered a loss? Is my unpaid time considered an expense? Is this tax deductible?
