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?