LLC Remains Patent Holder of Asset for Capital Gain Purposes
Date
2005
Authors
Harvey, Carol Kulish
Outenreath, Alyson
Tod, Jim
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Three co-inventors obtained patents for their inventions. Later, in exchange for membership interests in a new LLC, the inventors transferred their interests in the product to the company. The IRS ruled that the LLC was a disregarded entity for federal tax purposes and would be treated as a partnership. This short analysis discusses the tax treatment of future dispositions of interests in the patents.
Description
Keywords
LLC, limited liability company, patent holder, capital gains, long-term capital gain, asset disposition, tax law, IRS, disregarded entity, partnership
Citation
Carol Kulish Harvey, Alyson Outenreath, & Jim Tod, LLC Remains Patent Holder of Asset for Capital Gain Purposes, 7 No. 4 Bus. Entities 53 (2005).