2007-03-13 17:49:22 · 5 answers · asked by weasel 1 in Business & Finance ➔ Taxes ➔ United States
Hello, QueBe! Yes, franchise fees are deductible as a business expense, but you cannot deduct them all at once. Franchise fees are considered intangible assets and are "amortized" over a 15 year "life." This means that the deduction for the total franchise costs is taken in chunks each year, rather than written off all in one year.
2007-03-13 18:07:41 · answer #1 · answered by Anonymous · 3⤊ 1⤋
Your initial franchise fee should be capitalized and amortized over 15 years. However, you can elect to deduct $5,000 of business start-up expenses. This amount is reduced if the total amount of the start-up costs exceed $50,000.
2007-03-14 01:04:24 · answer #2 · answered by tma 6 · 1⤊ 1⤋
yes - any business related expense is tax deductable
2007-03-14 00:56:08 · answer #3 · answered by Anonymous · 0⤊ 2⤋
Absitively and positutely.
Just make sure you spell them correctly on your tax return.
2007-03-14 11:08:06 · answer #4 · answered by bold4bs 4 · 0⤊ 1⤋
yes
2007-03-14 10:42:48 · answer #5 · answered by Anonymous · 0⤊ 1⤋