|
Posted by Today on February 8, 2007, 8:17 am
Please log in for more thread options
inventor is sole owner of a corporation
inventor signs away all right in a patent to the corporation
can corporation pay inventor royalties on the patent, after
inventor has signed all rights away to the corporation?
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
|
|
Posted by Dick Adams on February 9, 2007, 12:30 am
Please log in for more thread options
> Inventor is sole owner of a corporation
> inventor signs away all right in a patent to the corporation
> can corporation pay inventor royalties on the patent, after
> inventor has signed all rights away to the corporation?
Let me guess. You set up this coporation and the agreement
without an attorney and a tax professional?
The very simple problem you will face when audited is an
IRS auditor recalassifying your royalties as dividends so
they can be taxed on the corporate return and again on
your return.
The auditor my choose to disallow the corporation and treat
the royalties as paid to you and tack on the interest and
penalties related to not filing a Schedule C.
You need a tax professional and then an attorney.
Dick
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
|
|
Posted by Todd H. on February 9, 2007, 12:30 am
Please log in for more thread options
> inventor is sole owner of a corporation
> inventor signs away all right in a patent to the corporation
> can corporation pay inventor royalties on the patent, after
> inventor has signed all rights away to the corporation?
Sure. Why not?
Legally of course, if the inventor has really assigned "all
rights" to the corporation though, the corporation is likely
under no legal obligation to do so. But that wouldn't make
it illegal for the corporation to pay out a royalty if they
chose.
Best Regards,
--
Todd H.
http://toddh.net/
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
|
|
Posted by Stuart A. Bronstein on February 9, 2007, 12:30 am
Please log in for more thread options
> inventor is sole owner of a corporation
> inventor signs away all right in a patent to the corporation
> can corporation pay inventor royalties on the patent, after
> inventor has signed all rights away to the corporation?
There's no tax rule against it. So your answer will depend
on the agreement by which the inventor "signed all rights
away." Talk to the lawyer who set up the deal in the first
place.
Stu
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
|
|
Posted by Victor Roberts on February 9, 2007, 12:30 am
Please log in for more thread options
> inventor is sole owner of a corporation
> inventor signs away all right in a patent to the corporation
> can corporation pay inventor royalties on the patent, after
> inventor has signed all rights away to the corporation?
This seems to be a question of contract law, not tax law.
Not being a lawyer, but having been in a similar situation,
I would say that the corporation could decide to change its
mind and offer the inventor a royalty. The corporation
obviously has no obligation to do so.
However, if I were in your situation I would check with a
real lawyer instead of me :-)
--
Vic Roberts
Replace xxx with vdr in e-mail address.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
|
| Similar Threads | Posted | | Canadian Royalty Trust 15% tax credit in an IRA | August 25, 2008, 6:36 pm |
| Should two states income on W2 sum to Federal Gross Income ? | April 9, 2008, 2:23 pm |
| Income Tax on Social Security Income | September 10, 2007, 6:58 pm |
| Re: Income Tax on Social Security Income | September 12, 2007, 10:05 pm |
| Schedule C Earned Income - Excluded as Foreign Earned Income? | May 31, 2007, 12:58 am |
| Re: Schedule C Earned Income - Excluded as Foreign Earned Income? | June 3, 2007, 10:29 pm |
| Re: Schedule C Earned Income - Excluded as Foreign Earned Income? | June 3, 2007, 10:29 pm |
| PTP & income tax | November 13, 2006, 8:09 pm |
| no income | February 20, 2008, 11:20 pm |
| how many pay income tax? | September 14, 2008, 6:57 pm |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap