Creator & Entrepreneur Edition — a concise reference. Always confirm with a tax professional; rules evolve.
| Code Section | What It Does | Key Notes |
|---|---|---|
| §181 | Immediate deduction of qualified film, TV, and live theatrical production costs in the year incurred. | Intended for public exhibition; typically requires ≥75% U.S. services. Sunset dates apply. |
| §174 | Deduct or amortize research & experimental expenditures (includes software and product development). | Materially broad: expenses to eliminate uncertainty in creating or improving a product/process. |
| §195 | Deduct up to $5,000 of startup costs; amortize remainder over 15 years. | Phase-out above certain thresholds; only for a new active trade or business. |
| §197 | Amortize acquired intangibles (goodwill, trademarks, franchises) over 15 years. | Applies to purchased (not self-created) intangibles. |
| §167(g) | Depreciation rules for films, sound recordings, and books when §181 not elected. | Useful life approach; coordinate with revenue expectations. |
| §179D | Deduction for energy-efficient commercial buildings (designers/producers may benefit). | Per-square-foot deduction; prevailing wage/apprenticeship rules can boost amounts. |
| Code Section | What It Does | Key Notes |
|---|---|---|
| §162 | General rule: deduct ordinary and necessary business expenses. | Ground rule for ongoing trade or business costs. |
| §179 | Immediate expensing of eligible tangible property (equipment, computers, some vehicles). | Annual limits apply; business-use requirements enforced. |
| §168(k) | Bonus depreciation for qualified property placed in service (percentage phases down by year). | Use alongside or instead of §179 depending on tax planning. |
| §263A (UNICAP) | Capitalization rules; certain small producers or categories qualify for exceptions. | Check small reseller/producer exceptions to accelerate deductions. |
| §199A | QBI deduction up to 20% for pass-through income (within thresholds and limitations). | Service-business limits and wage/property tests may apply. |
| §190 | Deduct up to $15,000 to remove architectural/transportation barriers for disabled access. | Often pairs with ADA compliance improvements. |
| Code Section | What It Does | Key Notes |
|---|---|---|
| §41 | R&D tax credit—dollar-for-dollar reduction of tax for qualified research activities. | Can offset payroll tax for qualified startups; pair with §174 planning. |
| §59(e) | Election to capitalize certain expenditures instead of immediate deduction. | Alternative Minimum Tax and timing strategy lever. |
| §197 / Software | Guidance for self-developed software costs (deduct vs. amortize depending on use). | Classify development vs. acquisition correctly. |
| §174(c)(3) | Clarifies that experimental/creative development to resolve uncertainty can qualify. | Supports software, games, VR/AR, and novel creative tech. |
| Code Section | What It Does | Key Notes |
|---|---|---|
| §179D | Energy-efficient commercial building deduction. | Designers for public projects may be allocated the deduction. |
| §45L | Energy-efficient home credit for builders/developers. | Credit amount depends on meeting energy standards. |
| QIP (§168) | Qualified Improvement Property—15-year life; bonus-depreciable. | Interior, non-structural improvements to nonresidential buildings. |
| §280A | Home office deduction for exclusive and regular business use. | Use simplified or actual expense method. |
| §469(c)(7) | Real Estate Professional status—treats rental activities as non-passive if tests met. | Enables use of rental losses against ordinary income. |
| Code Section | What It Does | Key Notes |
|---|---|---|
| §1202 | QSBS exclusion—up to 100% exclusion of gain on sale of qualified C‑corp stock. | Limits: up to $10M or 10x basis; holding period and active-business tests apply. |
| §1045 | Rollover of QSBS gain into new QSBS within 60 days. | Defers gain; strict timing. |
| §453 | Installment sale—spread gain over payment years. | Interest imputed; watch related-party rules. |
| §1031 | Like-kind exchange for real estate—defer capital gains tax. | Real property only; strict identification timelines. |
| §1400Z‑2 | Qualified Opportunity Zones—defer existing gains; exclude post-investment growth after 10 years. | Entity and asset tests; deadlines matter. |
| §404(a) | Deduct employer retirement contributions (SEP, 401(k), DB plans). | Major lever for self-employed or small businesses. |
| §170(e)(1)(B)(iii) | Donation of intellectual property—deduct FMV and receive potential income-based add-ons. | Appraisal and substantiation required. |
| Code Section | What It Does | Key Notes |
|---|---|---|
| §162(f) | Clarifies deductibility of restitution/compliance vs. nondeductible fines/penalties. | Settlement agreements should specify restitution to preserve deductibility. |
| §162(q) | No deduction for sexual harassment settlements subject to an NDA. | Draft agreements carefully if deduction is important. |
| §162(l) | Self‑employed health insurance deduction. | Above-the-line; reduces AGI. |
| §165(c)(3) | Casualty/theft losses (limited outside federally declared disasters). | Business losses have broader deductibility. |
| §170(h) | Conservation easement charitable deduction. | Valuation scrutiny is high; follow strict appraisal rules. |
| Code Section | What It Does | Key Notes |
|---|---|---|
| §162(a) | Artist/creator business expenses (supplies, space, travel, crew). | Requires for-profit motive; keep records. |
| §274 | Entertainment/business meals rules; some live-production meals can be 100% deductible. | Keep who/what/why logs. |
| §167(g) | Depreciation for tangible/creative assets if §181 isn’t used. | Match method to expected revenue curve. |
| §512(b)(13) | Nonprofit UBI coordination for cultural orgs. | Structuring matters to avoid excess UBIT. |
Use §174 to deduct R&D and §181 to expense film/TV/theater. Amortize acquired IP under §197.
Accelerate with §179 and bonus depreciation §168(k); boost buildings with §179D and QIP.
Seed with §195 (startup), reduce pass‑through income via §199A.
Conservation (§170(h)), specify restitution to preserve §162(f) deductibility.
Defer or exclude gains using §1031, §1045, §1202, and QOZ §1400Z‑2.