Research Write-Offs: What Solopreneurs Need to Know About the New IRS Elections
If you’ve ever spent hours building a workbook, challenge, or membership portal, the IRS just gave you a reason to celebrate. Under Revenue Procedure 2025-28, solopreneurs can now elect to deduct or amortize research and development (R&D) expenses, including software and digital product creation, retroactively for 2022–2024.
This means your compliance calendar, glossary, or onboarding module may qualify as a deductible research expense. The IRS now recognizes domestic software development as R&D, and you can either:
Deduct those costs in the year incurred, or
Amortize them over five years
Even better? You can file a superseding 2024 return to make the election without penalty.
Who Qualifies?
You’re likely eligible if:
You’re a sole proprietor, LLC, S corp, or partnership
You incurred domestic R&D expenses (think: software, educational content, branded tools)
You haven’t already changed your accounting method for these expenses under prior IRS rules
The IRS is offering an automatic extension to file superseding 2024 returns to make these elections. Translation: you get more time to claim what’s yours.
Why It Matters
For creators like you, this isn’t just about saving money; it’s about recognizing the value of your intellectual labor. You’re not “just making PDFs.” You’re building systems, solving compliance problems, and empowering women to thrive.
These elections let you:
Reduce taxable income for prior years
Improve cash flow heading into Q4
Align your tax strategy with your business model
And because the IRS now treats software development as a qualifying R&D activity, your digital ecosystem, from onboarding modules to interactive glossaries, is now counted.
What to Do Next
Here’s your September action plan:
Review your 2022–2024 expenses to identify costs associated with product development, research, or software.
Consult with your tax advisor: Inquire about making a Section 174A election or accelerating amortization under Section 70302.
File a superseding return if needed: You may have until early 2026 to amend your 2024 filings.
Document everything: Keep receipts, drafts, and development notes. Your creative process is tax-relevant now.
Final Thoughts
This isn’t just a technical update; it’s a mindset shift. The IRS is finally acknowledging the innovation behind small business content creation. You’re not just compliant. You’re a researcher, a developer, and a strategist.
So go ahead, claim your write-offs. You’ve earned them.
Sources:
Legal Disclosure:
CompliantHer™ program of (Relannford Enterprises LLC) is not a law firm. This document is intended for educational and informational purposes only and does not provide medical, legal, or financial advice. If you have questions about your specific situation, please consult a physician, attorney, or accountant licensed to practice in your state and/or country.
Affiliate Disclosure:
Some of the links in this course are affiliate links, which means that at no additional cost to you, CompliantHer™ (Relannford Enterprises LLC) may earn a commission if you decide to make a purchase after clicking through the link.
