Trademark registration protects your most small business’ most valuable asset: the small business brand. Thinking about your trademark as an asset as opposed to an expense is helpful when understanding how trademark costs are viewed from a tax perspective.
Generally speaking, trademarks and the costs associated with filing and legally maintaining trademarks are treated as assets for tax purposes. Trademark costs, including filing fees and attorney fees, should be addressed in a balance sheet for your trademark asset and not as a business expense dedution. Legal fees associated with monitoring and enforcing your trademark rights may also be best addressed in your trademark asset balance sheet. However, costs associated with marketing and promoting your trademark would likely be best categorized as a business expense. As noted above, always consult with your CPA regarding the tax matters of your small business.
*This post is not intended to be legal advice. Alex is not a tax attorney. Alex recommends that you consult with a CPA or other tax professional in reference to any tax related matters.