So with taxes on the mind, we wanted to make sure you know that the IRS permits you to deduct many invention expenses. Really.
You see, the IRS recognizes that many Research & Development expenditures are critical to the invention process. So the agency’s bean counters have concluded that a number of your expenditures can be deducted. Among them: investment to develop and/or improve your product, and investment to obtain your patent including patent attorney fees.
That said, you can’t deduct expenditures for consumer & market research, nor quality control—we think they’re essential to the development of good inventions, but the IRS folks don’t quite see eye-to-eye with us.
Of course, deductions are less certain than death & taxes… so you’ll definitely want to discuss the particulars with your accountant or tax preparer. You can also go straight to the IRS for more info—click here to visit the IRS web page on how to treat your R&D spending.