I have a client w/ an "s" corp. In 2006 he had a idea for a porduct. He paid $ 15,000 to a company to research and to deveolp a prototype of the product. This company then is submitting this prototype product to various companies to get it licensed and in return hopes to get roylties from this. The question ? what deductions are available to him for the 2006 tax return, and what form do the go on. thanks bobm
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patent expenses
No deduction I'd say, but capitalize the costs and recover when invention is perfected and
marketed. Doesn't matter whether for individual or corporation. I've a client who spent
15,000 this way, but to no avail, and this year we write off the last 3,000.ChEAr$,
Harlan Lunsford, EA n LA
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