Patent and trademark expeses

[ljwalters]

Client is a contractor that specializes in built in custom furniture and cabinets. He has a unique cabinet he dedigned for the kitchen and applied for a patent.

Are these expenses deductable now in this year or will the be capitalized. His hopes are to sell to a highend cabinet co and receive royalties eventually. BUT he has already installed one in a house. Total expenses for patent spent this year is $385.

Linda

[Pacun]

You should capitalize the patent expenses.