Tax Facts

8156 / Does tax reform impact the tax treatment of self-created intellectual property?

Updated: December 03, 2024 at 02:23 PM


The 2017 tax reform legislation provides that gain or loss from the disposition of a self-created patent, invention, model or design, or secret formula or process will be taxed as ordinary income or loss. The election to treat musical compositions and copyrights in music as capital assets was not changed.1






1.  IRC § 1221(a)(3).

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