Trademark registration legal fees belongs on Line 27a, other expenses.
Why line 27a
Amounts paid to obtain a trademark registration, the attorney work and the government filing fees alike, create an intangible asset rather than buy a service for the year. They are capitalized and amortized over 15 years, computed in Part VI of Form 4562, and the yearly amortization is reported in other expenses rather than on line 17. Ongoing legal advice about policing or renewing a mark you already own is ordinary operating legal work and does stay on line 17.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so trademark registration legal fees lands on Line 27a without you sorting it.
Start for freeWhat trademark registration legal fees is confused with
- Line 17, legal and professional services
- Legal work to protect or renew a mark you already hold is an ordinary line 17 expense; legal work to obtain the registration in the first place is capitalized.
- Form 4562, form 4562, carried to schedule c line 13
- The 15-year amortization is computed in Part VI of Form 4562 even though the resulting deduction is listed in other expenses for a Schedule C filer.
- Line 13, depreciation and section 179 expense deduction
- Line 13 is depreciation of tangible property and the section 179 election; an intangible such as a trademark is amortized instead.
Examples that belong on line 27a
- A $1,500 attorney fee to file a trademark application for your brand name
- The government application filing fee for one class of goods
- $600 of attorney time responding to an examiner's office action
- A $900 fee to register a logo mark alongside the word mark
What does not belong here
- A full line 17 deduction in the year of filing
- A line 13 depreciation entry, since an intangible is amortized and not depreciated
- Cease and desist work on a mark you already own, which is ordinary line 17 legal expense
The limit that applies
Costs of obtaining the registration are amortized over 15 years, while routine maintenance and enforcement of a mark you already own are deducted currently.
What to keep
Keep the attorney invoices, the filing receipts, and the registration certificate with its date, which is what starts the amortization period.
Other expenses on line 27a
| Expense | Line |
|---|---|
| a background check | Schedule C, Line 27a |
| a branded gift for a client | Schedule C, Line 27a |
| a business coach | Schedule C, Line 27a |
| a conference registration fee | Schedule C, Line 27a |
| a hot-desk day pass | Schedule C, Line 27a |
| a payroll service | Schedule C, Line 27a |
| a professional certification renewal | Schedule C, Line 27a |
| a stock photo license | Schedule C, Line 27a |
| a telephone answering service | Schedule C, Line 27a |
| a trade show booth fee | Schedule C, Line 27a |
| a translation service | Schedule C, Line 27a |
| an online course | Schedule C, Line 27a |
Related lookups
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Sources
- Instructions for Schedule C (Form 1040)
- Publication 334, Tax Guide for Small Business
- About Form 4562, Depreciation and Amortization
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so trademark registration legal fees lands on Line 27a without you sorting it.
Start for free