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Re: Deduct invention process expenses?

Postby Scrupulous » Thu Feb 18, 2010 7:28 pm

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I'd be interested in seeing what they told you about the prior art. Somebody may be glossing over important details there.

Just to add, yes, you can deduct those expenses for the most part, as research-and-experimentation. And yes, the deduction can offset your project expenses, depending on your tax bracket. But, it's best if the expenses themselves add value to the project. For example, if you invest in a patent, or inventory, or the like, then you will be adding value to your project and deducting income. However, if you invest income on some dubious process with no guarantee of any added value, then the tax deduction doesn't really benefit you.

You can read more about tax deductions from an old article of mine here.

Re: Deduct invention process expenses?

Postby slammerhi » Fri Feb 26, 2010 6:50 pm

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Don't feel bad about losing your 600 bucks. You came out pretty good. I spent 19,500 with a company called IP&R out of San francisco. We contacted them through a book their president wrote. Its a shame though it was a really good book, We flew out and looked at their facility and it overlooked the bay area and we were impressed by all that appeared to be the state-of-the-art product promotion firm. It was too bad we didn't recieve their state-of-the-art services. All we had to show was a poor product brochure that took weeks for them to correct the spelling. They gave us monthly reports about the results of their contacts with companies and who they talked to (which I found out later that some of the people they said they talked to didn't even work for that company). If you feel you have a good product protect it first if you can, before talking to companies about your invention.