Development and Purchase of Technological Intellectual Properties Including Patents and Trade Secrets

This chapter examines the costs incurred in the creation of technological intellectual properties can often be currently deducted although certain costs are required to be capitalized (some of which may be recovered over time and others of which can only be recovered upon sale or disposition of the property), while costs to purchase (as opposed to create) existing technological intellectual properties must generally be capitalized and recovered over extended period of time. This chapter will assist in making the determination of which costs are currently deductible, which are amortizable over a period of time and which must be capitalized into the basis of the property and cannot be recovered until sale or disposition