Legal Question in Tax Law in Pennsylvania

Re: Franchise Purchase and tax deductions

Depending upon exactly what you bought, there may be some current deductions, although some expenses, unfotunately, may need to be amortized. The purchase of short term supplies and expendible materials would be immediatey deductible. Equipment would need to be amortized over the life in accordance with the type of property. The franchise fee may be amortized over 14 years.

You will need to consult a tax and business attorney to review the documents you signed and to determine the tax treatment.

Some of the tax issues are discussed on my website http://www.taxesq.com/