This clip gets practical fast. After discussing why R&D matters, the conversation shifts to how to actually strategize when your R&D costs are amortized instead of fully deducted upfront.
They walk through an example: Maria amortized $400,000 of R&D in 2024, meaning it’s spread over five years. The key point is that she isn’t “stuck” with only one outcome, she has options, and the best choice depends on her income timeline, tax exposure, and goals.
One option is to keep the amortization schedule as-is, especially if Maria expects steady (or higher) income over the next few years and wants the deductions to offset taxes gradually. Another strategy is to pursue a more aggressive approach if last year was a high-income year and she wants to maximize relief sooner, potentially by adjusting how those deductions get applied.
They also note that eligibility matters. To use certain approaches, Maria may need to qualify as a small business based on average gross receipts (they mention under $30M across the last three years), and that’s something you’d confirm with a knowledgeable advisor.
The big takeaway is the analogy: these deductions work like chess pieces. With the right tax strategist, you can position them across years (2025, 2026, or beyond) to match your income, protect cash flow, and avoid leaving benefits on the table.
