Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Entertainment Law & FinanceKickerFeaturesTopicsCommercial LawSectionsNewsLJN Newsletters

IRS Regulations For Song Sales Tax Treatment

By Mark L. Silow
August 27, 2008

The Internal Revenue Service (IRS) has issued proposed and temporary regulations specifying the time and manner for electing to treat the sale or exchange of “self-created” musical compositions or copyrights as the sale or the exchange of a capital asset resulting in a potential capital gain.

The regulations reflect changes made by the Tax Increase Prevention and Reconciliation Act of 2005 (Tax Increase Act) and the Tax Relief and Health Care Act of 2006 (Tax Relief Act). The sale or exchange of musical compositions or copyrights in musical works created by the taxpayer previously resulted in ordinary income. Currently, ordinary income realized by an individual is taxed at a maximum rate of 39.6%, while capital gains realized by an individual from the sale or exchange of a capital asset are taxed at a maximum rate of 15%.

This premium content is locked for LJN Newsletters subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

The DOJ's New Parameters for Evaluating Corporate Compliance Programs Image

The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

A Lawyer's System for Active Reading Image

Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.