Comment by leetrout

It also says in Sec. 1.174-3 Treatment as expenses:

> Research or experimental expenditures paid or incurred by a taxpayer during the taxable year in connection with his trade or business are deductible as expenses, and are not chargeable to capital account, if the taxpayer adopts the method provided in section 174(a)

Seems like there could be room to challenge "all software dev is R&D"