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"Other deductible expenses" not reducing my taxable income

I have a very large deduction that is not budging my taxable income at all. Is that a TT bug?

 

Also, I don't know where else to deduct the cost of patent application fees (for an individual) other than under "Other deductible expenses". Is it the wrong place?

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3 Replies
JohnB5677
Expert Alumni

"Other deductible expenses" not reducing my taxable income

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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"Other deductible expenses" not reducing my taxable income

Yes, the large deduction is the patent application fees, attorney fees, and the hours I put into responding to the examiner. Can I just say I'm self-employed by virtue of doing those things or do I require a DBA?

MaryK4
Expert Alumni

"Other deductible expenses" not reducing my taxable income

You do not need a DBA, you are a sole proprietor.   @michaelmross 

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