• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Voila! Create deductions for intellectual property

by on
in Small Business Tax,Small Business Tax Deduction Strategies

If you donate intellectual property (such as patents) to charity, you can claim a tax deduction for your generosity. But the 2004 tax law restricts what you can deduct.

Strategy: Give away high-basis property and hold on to low-basis property (unless there are extenuating factors). By doing so, you can maximize the tax benefits for these donations.

Your write-off for intellectual-property donations made after June 3, 2004, is limited to the lesser of your basis in the property or its fair market value. In most cases, your deduction won't exceed your cost. But the new law also provides extra deductions over 12 years based on the "qualified donee income" received or accrued by the charity. This extra deduction is figured on a sliding scale percentage allocable to the property for each year.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/5596/voila-create-deductions-for-intellectual-property "

Leave a Comment