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-   -   Copyrighted Material (https://www.askmehelpdesk.com/showthread.php?t=124074)

  • Aug 29, 2007, 03:17 PM
    Mathandler1
    Copyrighted Material
    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!
  • Aug 29, 2007, 05:23 PM
    AtlantaTaxExpert
    In my opinion, it IS ordinary income, as it is a product of the songwriter's profession.
  • Aug 30, 2007, 11:38 AM
    Mathandler1
    Thanks for confirming as I thought so.
  • Aug 30, 2007, 01:26 PM
    AtlantaTaxExpert
    Glad to help!
  • Sep 1, 2007, 07:32 AM
    The Texas Tax Expert
    There is a relatively recent exception for self-created musical compositions. The creator may elect capital gain treatment.
  • Sep 2, 2007, 02:18 PM
    The Texas Tax Expert
    Note that ATE's comment about it being ordinary is in fact the default position. Unless you elect otherwise, it will be ordinary.
  • Sep 4, 2007, 09:45 AM
    AtlantaTaxExpert
    See, TTE and I actually DO agree sometimes! :-)

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