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That’s All Capital Gain Right? Income Taxes and Intellectual Property Monetization

Intellectual property (“IP”) is typically monetized either by sale or (royalty generating) license agreements. The Code often allows sales to be taxed at preferential capital gains rates while simple royalties are ordinary...more

Federal Income Taxation of Intellectual Property Development and Cost Recovery

Intellectual property (“IP”) development can cost millions of dollars so cost recovery timing can be financially material. General tax principles typically require that expenses associated with creating assets having useful...more

The Taxman, Technology Litigation and Cavalier Settlement Structures

Intellectual property (“IP”) is hugely important to businesses. Given that importance, IP owners must occasionally litigate against the unauthorized use of their technology. The costs of such litigation and appurtenant...more

Thoughts on Cryptocurrency and Tax Partnerships

Cryptocurrency holders often want to put their assets into an entity for a host of reasons, such as asset protection, arranging negotiated management rights and exit planning.  This post discusses basic federal income tax...more

Carried Interest Taxation: Update on Final Regulations and Potential Legislative Changes

In January 2021, the U.S. Department of Treasury and the Internal Revenue Service  released final regulations (the Final Regulations) under Section 1061 of the Internal Revenue Code of 1986, as amended (the Code).  Code...more

IRS Targets Abusive Micro-Captive Insurance Transactions

On January 31, 2020, the IRS issued a news release that warns taxpayers that it has created 12 new examination teams to audit abusive micro-captive insurance transactions. “Micro-captive” refers to a small insurance...more

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