[Mathandler1]

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!

[AtlantaTaxExpert]

In my opinion, it IS ordinary income, as it is a product of the songwriter's profession.

[Mathandler1]

Thanks for confirming as I thought so.

[AtlantaTaxExpert]

Glad to help!

[The Texas Tax Expert]

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

[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.

[AtlantaTaxExpert]

See, TTE and I actually DO agree sometimes! :-)