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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

What Did We Just Acquire? An Introduction to the Taxation of Acquired Intangibles

In addition to being developed in-house, intellectual property (“IP”) can obviously be acquired from third parties. IP acquisitions may be more germane now than in the recent past as developers race to create and monetize...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

The Basis Matrix: Navigating the Interplay of Sections 743(b) and 734(b)

Real estate funds and family offices are two types of investors that often (i) purchase equity interests in partnerships and (ii) make in-kind asset distributions for tax planning purposes. Well advised real estate and family...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

Cryptocurrency: The Basics of Tax Treatment and Recognition

Cryptocurrencies might, simplistically, be defined as virtual currencies that use cryptography to secure transactions which are digitally recorded on a widely distributed ledger.  The ledger technology uses independent...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

Compelling Justification Required when Interfering with Stockholder Voting Rights

The Coster v. UIP Companies, Inc. decision provides a framework for evaluating stockholder disenfranchisement claims.  Directors should carefully consider how, and under what conditions, they will take actions that dilute...more

Dozens of McDonald’s Corporation’s African American Franchisees Sue Alleging Pervasive Racial Discrimination

McDonald’s Corporation (“McDonald’s”) is facing two high-profile lawsuits involving allegations of race-based discrimination against franchisees and executives....more

McDonald’s Sues Former CEO to Recoup Millions in Severance Alleging of Improper Employee Relationships

McDonald’s Corporation (McDonald’s) sued its former Chief Executive Officer, Steve Easterbrook, in August 2020 in an effort to force him to repay the $40 million in severance and equity awards provided to him when the company...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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