Legal Question in Intellectual Property in Maryland
I am in the process of pre-developing an invention with an invention idea company. they will market and build a prototype for me for a price, of course. Can I write off what it cost me for this invention?
Thanks
AL
1 Answer from Attorneys
As a Franchise Attorney I recommend that you check with your CPA, as this is more of an accounting - tax question. Normally, business-related expenses are deductible, but you have to file a business return to deduct them (probably, in your case, a Schedule C). Also, because it's an invention, the expenses may have to be amortized over the life of the invention. Again, that's why you need to consult with a good CPA in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation