Are my franchise fees tax deductable? Even if they are removed from my check before I get it.?

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Are my franchise fees tax deductable? Even if they are removed from my check before I get it.?

2007-03-20 04:56:57 · 2 answers · asked by weasel 1 in Business & Finance ➔ Taxes ➔ United States

2 answers

You're probably referring to royalties being deducted from your check. Yes, royalties are deductible business expense.

Franchise fees are paid as a start-up cost and are capitalized and amortized.

2007-03-20 13:30:38 · answer #1 · answered by tma 6 · 0⤊ 0⤋

Yes, they are deductible as long as they are not a payment for the start up of the business.

2007-03-20 07:42:57 · answer #2 · answered by taxman 2 · 0⤊ 0⤋