Hopefully this is an easy one for you guys...

A client of mine paid a lawyer around $8000 to file for patents and trademarks for products they will be selling in the future.

Should I amortize or expense the trademarks and patents?

asked 29 Oct '09, 03:06

TaxQueries's gravatar image

TaxQueries ♦♦
1.8k1059129
accept rate: 2%


§ 197 intangible. Yes, you must amortize for 180 months.

link

answered 29 Oct '09, 16:09

SandySea's gravatar image

SandySea
6.0k11232
accept rate: 7%

edited 29 Oct '09, 17:42

Additionally, amortization begins upon commencement of the trade or business.

(30 Oct '09, 00:08) Brent Berkman

I was thinking R&D expense, patent application process. Either amortize or expense.

Publication 535, chapter 7, research & experimental costs.

link

answered 29 Oct '09, 18:54

TriWyo%201's gravatar image

TriWyo 1
311
accept rate: 0%

How is this R&D? Your thoughts on how this is not an intangible but part of research and development? :)

(29 Oct '09, 19:17) SandySea

oh I get your drift here. Client paid for APPLICATION and did not pay for actual patent and/or trademark? Great idea here.

(29 Oct '09, 19:19) SandySea

Sandy...I believe you mean Sec. 197 intangible.

link

answered 29 Oct '09, 17:39

Bill%20Loffredo%20CPA's gravatar image

Bill Loffred...
1872
accept rate: 0%

sure enough...thanks for the typo :)....

(29 Oct '09, 17:41) SandySea

You're welcome!!!!

(29 Oct '09, 20:25) Bill Loffred...
Your answer
toggle preview

Follow this question

By Email:

Once you sign in you will be able to subscribe for any updates here

By RSS:

Answers

Answers and Comments

Markdown Basics

  • *italic* or _italic_
  • **bold** or __bold__
  • link:[text](http://url.com/ "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported

Tags:

×21
×11
×4
×2
×1

Asked: 29 Oct '09, 03:06

Seen: 5,458 times

Last updated: 29 Oct '09, 18:54