[Spivak]

The answer is that it's an operational experience when it's a salaried employee and a capital expense when it's a contractor. Like not in a theoretical sense, this is how it's classified right now.

[metaphor]

Source?

Consider a contractor in a software maintainer role; accounting for this as capex makes zero sense.

[Spivak]

It's how they're classified at $dayjob. It doesn't matter what they do, it matters that their contract is a fixed expense rather than an ongoing one.

[bravesoul2]

That's probably something they are doing wrong then.