Taxation of Intellectual Property Assets (Completed)

Date: Wednesday, October 7, 2020
Instructor: Jennifer Kowal
Begin Time:  9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

In the modern digital economy, intellectual property assets (IP) often represent a large share of the value of company's business assets. Like other business assets, IP assets such as patents, copyrights, formulas, processes, designs, patterns, know-how, format, trade secrets, trademarks, trade names, franchises, and computer software are subject to important tax considerations.

This webinar covers the basic U.S. federal tax considerations of common events during the life cycle of intellectual property, including creation, acquisition, exploitation, licensing, and transfer.

Topics Covered

  • Tax basis of intellectual property
  • Capitalization of development costs, vs. deduction as R&D
  • Amortization of basis of IP assets
  • Determination of asset characterization
  • TCJA rules relating to offshore intellectual property
  • Basic state tax treatment of IP assets and sourcing rules

Learning Objectives

  • Identify how to determine initial basis of IP assets and describe amortization rules for basis recovery
  • Recognize how to explain which IP development costs may be deducted and which must be capitalized
  • Identify which IP monetization transactions produce ordinary income and which produce capital gain
  • Describe the TCJA rules relating to offshore intellectual property and how they apply
  • Identify how to discuss basic state tax sourcing rules relating to IP located or used in a state

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

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