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Hi James, thanks for the reply. I agree with your interpretation if the individual still owns the IP. However, it is also my understanding that the IP (similar to other assets) could be contributed to an S-Corp upon formation in a nontaxable transaction ...
I researched this recently for a free lance writer who is no longer writing. As I understand it, if he took deductions in the year the property was developed, he owes S.E. tax on the royalties. ------------------------------ James Metz jmetz@msmetzco.com ...
I have a new client who operated as a sole proprietor developing music for several years. He formed an LLC in 2023 to handle his business going forward and elected S-Corp status. The issue I am concerned with is that some of the music he developed ...
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