[quote=njtosd]FWIW – I think you have an uphill battle. Copyrights are excluded from the definition of capital assets under section 1221 of the IRS Code. [/quote]
njtosd,
Thanks for all the input. Yes, I think it might be an uphill battle. But then again, I did find the following in IRS Publication 544, (page 3) which deals with gains and losses, and specifically says:
[quote=IRS Publication 544] Copyright. Payments you receive for granting the exclusive use of (or right to exploit) a copyright through out its life in a particular medium are treated as received from the sale of property.
[/quote]
In my particular case I am granting the exclusive use of my copyright to a company to use forever on a specific medium, so this would seem to apply.
But I can’t find a section of tax code that says anything like that. So, that’s why I’m thinking I need a tax attorney. And, yes, I think your idea of looking for two people might be the way to go.
(Actually I might only need a good tax attorney, since all the IP issues are already a done deal. I just need to make sure that the wording in contracts doesn’t botch the tax advantages that might be out there.)
