Comments on: Ask the taxgirl: Trademark Expenses and Legal Fees http://www.taxgirl.com/ask-the-taxgirl-trademark-expenses-and-legal-fees/ Paying taxes is painful... but reading about them shouldn't be. Sun, 12 Feb 2012 17:55:29 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Jill Johnston http://www.taxgirl.com/ask-the-taxgirl-trademark-expenses-and-legal-fees/comment-page-1/#comment-7635 Jill Johnston Sun, 30 Nov 2008 02:28:12 +0000 http://www.taxgirl.com/?p=1690#comment-7635 First of all, I would recommend that all small businesses try <a href="http://www.secureyourtrademark.com" rel="nofollow">trademarking</a> their names and/or logos. I did. And secondly, according to several online trademark <a href="http://www.law.cornell.edu/topics/trademark.html" rel="nofollow">resources</a>, getting a trademark is indeed a business expense that can be deducted. Thanks! First of all, I would recommend that all small businesses try trademarking their names and/or logos. I did. And secondly, according to several online trademark resources, getting a trademark is indeed a business expense that can be deducted. Thanks!

]]> By: Kelly http://www.taxgirl.com/ask-the-taxgirl-trademark-expenses-and-legal-fees/comment-page-1/#comment-6891 Kelly Tue, 21 Oct 2008 16:49:30 +0000 http://www.taxgirl.com/?p=1690#comment-6891 Vinny - Thanks! You're absolutely right to suggest caution with respect to intangible assets - and a trademark (as is most intellectual property) is considered intangible. See section 197 of the Tax Code for more information. I think this is another example of the importance of separating expenses - you can find a whole lot of discussion and case law as between attributable costs versus actual costs and the resulting tax consequence. It may well be that you have to segregate some of the costs that would not otherwise qualify as "ordinary and necessary." This is an extremely tricky area - as always, use make sure that you consult with a tax professional about your specific circumstances. Vinny – Thanks! You’re absolutely right to suggest caution with respect to intangible assets – and a trademark (as is most intellectual property) is considered intangible. See section 197 of the Tax Code for more information.

I think this is another example of the importance of separating expenses – you can find a whole lot of discussion and case law as between attributable costs versus actual costs and the resulting tax consequence. It may well be that you have to segregate some of the costs that would not otherwise qualify as “ordinary and necessary.”

This is an extremely tricky area – as always, use make sure that you consult with a tax professional about your specific circumstances.

]]> By: Vinny http://www.taxgirl.com/ask-the-taxgirl-trademark-expenses-and-legal-fees/comment-page-1/#comment-6889 Vinny Tue, 21 Oct 2008 14:43:09 +0000 http://www.taxgirl.com/?p=1690#comment-6889 You have to be careful with intangible assets like trademarks. Often the costs incurred to create the intangible must be capitalized and are not deductible for tax purposes, unless an amortization exception applies (such as a 15-year section 197 intangible). You have to be careful with intangible assets like trademarks. Often the costs incurred to create the intangible must be capitalized and are not deductible for tax purposes, unless an amortization exception applies (such as a 15-year section 197 intangible).

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