Copyrighted Material

Mathandler1 · #1 Aug 29, 2007, 02:17 PM

The way I see it is that when a songwriter writes a song, copyrights it, and then sells it to anational song brokerage company for $20,000, this would be considered as an ordinary income and not a LTCG or a STCG or is excluded from gross income...Correct? This is something that I have not thought about before. Thanks!

Mathandler1 · Aug 30, 2007, 02:38 PM

Thanks for confirming as I thought so.

The Texas Tax Expert · Sep 1, 2007, 10:32 AM

There is a relatively recent exception for self-created musical compositions. The creator may elect capital gain treatment.

The Texas Tax Expert · Sep 2, 2007, 05:18 PM

Note that ATE's comment about it being ordinary is in fact the default position. Unless you elect otherwise, it will be ordinary.



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