Trademarks and patents. Should I amortize or expense?

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?

trademark patent amortize expense lawyer

asked 29 Oct '09, 03:06

TaxQueries ♦♦
1.8k●8●36●111
accept rate: 2%

3 Answers:

2	§ 197 intangible. Yes, you must amortize for 180 months. link answered 29 Oct '09, 16:09 SandySea 6.0k●1●6●26 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 1
31●1
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

2	Sandy...I believe you mean Sec. 197 intangible. link answered 29 Oct '09, 17:39 Bill Loffred... 187●2 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...

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