Welcome to the Forum for InventorSpot.com, the most popular invention related website in the world. Read our welcome message.
Moderators: Michelle, Scrupulous, citizen
Deduct invention process expenses?
by ned4spd8874 » Wed Feb 17, 2010 5:49 pm
- ned4spd8874
- White Belt
- Posts: 5
- Joined: Wed Feb 17, 2010 5:45 pm
Last year I paid about $600 to a company to start the initial process of having an idea of mine put into market. I am now talking to them about the next step of the process which is actual R&D, development, etc. This next process will cost almost $10,000! Unfortunately I recently lost my job though and am not sure if I'm going to be able to continue this process obviously.
One thing that I just started to look into is the potential to deduct some or all of these expenses on my taxes. According to the IRS site: Current-year Deduction of Research & Development Expenditures , I should be able to. However, the last parts don't make me feel very at ease. Since I obviously started the process last year and it's continuing into this year.
I'm going to talk to my family to see if they would like to parter with me to get this off the ground. But I would like to have all the facts when I talk to them. If I can tell them that they will get their money back or most of it at tax time, then I'm sure I can get some help. If not, then I will have to back-burner this.
Can anyone help me out here with the tax law and how it will work in this situation?
One thing that I just started to look into is the potential to deduct some or all of these expenses on my taxes. According to the IRS site: Current-year Deduction of Research & Development Expenditures , I should be able to. However, the last parts don't make me feel very at ease. Since I obviously started the process last year and it's continuing into this year.
I'm going to talk to my family to see if they would like to parter with me to get this off the ground. But I would like to have all the facts when I talk to them. If I can tell them that they will get their money back or most of it at tax time, then I'm sure I can get some help. If not, then I will have to back-burner this.
Can anyone help me out here with the tax law and how it will work in this situation?
Re: Deduct invention process expenses?
by rather-be-golfing » Wed Feb 17, 2010 11:26 pm
-
rather-be-golfing - Green Belt
- Posts: 204
- Joined: Mon Feb 25, 2008 12:25 pm
Sounds like you went to an invention submission company. There are hundreds of them and they will gladly tell you that your idea will make you rich and take your money. The problem is that they get paid no matter what happens. They typically have a very small....tiny....number of people who make more than they spend.
You can have a fantastic idea but their business is not built on successful products, it is built on exploiting people's dreams.
If you post the name of the company that you are using there are lots of members who will gladly help you check them out. Also there is a huge amount of content on I-spot about the scams.
Don't spend another penny until you have seriously checked them out!
There are lots of people here who can help you properly evaluate an idea and show you how to get it done without going broke.
You can have a fantastic idea but their business is not built on successful products, it is built on exploiting people's dreams.
If you post the name of the company that you are using there are lots of members who will gladly help you check them out. Also there is a huge amount of content on I-spot about the scams.
Don't spend another penny until you have seriously checked them out!
There are lots of people here who can help you properly evaluate an idea and show you how to get it done without going broke.
Re: Deduct invention process expenses?
by ned4spd8874 » Thu Feb 18, 2010 7:34 am
- ned4spd8874
- White Belt
- Posts: 5
- Joined: Wed Feb 17, 2010 5:45 pm
Thanks for the reply. The company that I have been talking to is Davison. They are going to propose my idea to a company called Better Sleep.
Re: Deduct invention process expenses?
by rather-be-golfing » Thu Feb 18, 2010 11:38 am
-
rather-be-golfing - Green Belt
- Posts: 204
- Joined: Mon Feb 25, 2008 12:25 pm
Well that is easy.....Davison has one of the worst reputations in the industry.
Check out this forum...viewtopic.php?f=29&t=694
Check out this forum...viewtopic.php?f=29&t=694
Re: Deduct invention process expenses?
by ned4spd8874 » Thu Feb 18, 2010 12:58 pm
- ned4spd8874
- White Belt
- Posts: 5
- Joined: Wed Feb 17, 2010 5:45 pm
rather-be-golfing wrote:Well that is easy.....Davison has one of the worst reputations in the industry.
Check out this forum...viewtopic.php?f=29&t=694
Well that just sucks then. I guess I need to investigate alternative ways to get my idea off the ground. I actually came up with a really good one recently too. Need to figure out how to move on these ideas.
Thanks for the reply!
Re: Deduct invention process expenses?
by rather-be-golfing » Thu Feb 18, 2010 2:51 pm
-
rather-be-golfing - Green Belt
- Posts: 204
- Joined: Mon Feb 25, 2008 12:25 pm
No, it would suck if you were out $10,000!
Did they do a professional patent search? If not, have you done a basic one on your own?
There is no reason why you cannot approach a manufacturer on your own. You may want to file a Provisional Patent Application first or have them sign a non-diclosure agreement before you di it.
Its not easy but it can be done. Just make sure that your idea is truly unique and marketable.
Usually there are a lot of people here willing to help but it is really quiet right now for some reason.
Did they do a professional patent search? If not, have you done a basic one on your own?
There is no reason why you cannot approach a manufacturer on your own. You may want to file a Provisional Patent Application first or have them sign a non-diclosure agreement before you di it.
Its not easy but it can be done. Just make sure that your idea is truly unique and marketable.
Usually there are a lot of people here willing to help but it is really quiet right now for some reason.
Re: Deduct invention process expenses?
by ned4spd8874 » Thu Feb 18, 2010 2:56 pm
- ned4spd8874
- White Belt
- Posts: 5
- Joined: Wed Feb 17, 2010 5:45 pm
rather-be-golfing wrote:No, it would suck if you were out $10,000!
Did they do a professional patent search? If not, have you done a basic one on your own?
There is no reason why you cannot approach a manufacturer on your own. You may want to file a Provisional Patent Application first or have them sign a non-diclosure agreement before you di it.
Its not easy but it can be done. Just make sure that your idea is truly unique and marketable.
Usually there are a lot of people here willing to help but it is really quiet right now for some reason.
Good point.
The did do a patent search. There are similar ideas out there, but he said that is nothing to worry about. That even though something is out there, it hasn't fully gotten a patent or something like that. I can't remember exactly what he said.
Re: Deduct invention process expenses?
by Michelle » Thu Feb 18, 2010 6:24 pm
-
Michelle - Black Belt
- Posts: 1529
- Joined: Wed Oct 11, 2006 7:27 am
Before you spend another penny, I would strongly urge you to look at our inventor information section and read up on everything first.
http://inventorspot.com/invention_information
Also, make sure to do a search on our site and on the web for any company you are going to do business with to see what folks say.
Finally, there are some great books out there that are well worth their money:
Docie Inventor's Bible is a classic great guide you can find at http://www.amazon.com/gp/product/158008 ... 1580081207
Good luck,
Michelle
http://inventorspot.com/invention_information
Also, make sure to do a search on our site and on the web for any company you are going to do business with to see what folks say.
Finally, there are some great books out there that are well worth their money:
Docie Inventor's Bible is a classic great guide you can find at http://www.amazon.com/gp/product/158008 ... 1580081207
Good luck,
Michelle
Re: Deduct invention process expenses?
by rather-be-golfing » Thu Feb 18, 2010 6:33 pm
-
rather-be-golfing - Green Belt
- Posts: 204
- Joined: Mon Feb 25, 2008 12:25 pm
It's about time that someone else came in to this! Thanks Michelle.
If you paid for a patent search they should have provided you with a copy of the results. Otherwise I doubt that it was properly done.
Google Patents is a great start to doing your own.
RBG
If you paid for a patent search they should have provided you with a copy of the results. Otherwise I doubt that it was properly done.
Google Patents is a great start to doing your own.
RBG
Re: Deduct invention process expenses?
by ned4spd8874 » Thu Feb 18, 2010 6:36 pm
- ned4spd8874
- White Belt
- Posts: 5
- Joined: Wed Feb 17, 2010 5:45 pm
rather-be-golfing wrote:It's about time that someone else came in to this! Thanks Michelle.
If you paid for a patent search they should have provided you with a copy of the results. Otherwise I doubt that it was properly done.
Google Patents is a great start to doing your own.
RBG
Yes, I do have the results of their patent search. I will have to look through here and do some research. Thanks all for the help!
12 posts
• Page 1 of 2 • 1, 2