What is the large deduction that you have? Many deductions have limitations that max them out before you get additional tax savings.
The costs associated with the patent—namely, patent application fees and legal costs, as well as research and development expenses you paid to someone else—can be deducted from the company's taxes. Therefore, you will have to file a schedule C for self-employment to take the deduction.
The legal and filing costs associated with the patent are carried as an intangible asset and are expensed ratably over 15 years.
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