Re: copyright and estate taxes

On 07/18/2000, Robert A. Baron <rabaron[_at_]pipeline.com> wrote:
>
> Are copyrighted holdings considered taxable assets in the evaluation
> of estates. If they are so considered, how are values for such
> intellectual properties determined?

Here is an answer to Robert's question, courtesy of Dennis S. Morris, of Riordan & McKinzie in Los Angeles:

   "Yes, copyrights are IP and considered a taxable asset in the    evaluation of estates similar to the treatment of tangible    property. The standard of value is the fair market value on    date of death under a willing-buyer, willing seller test.

   "The value of the copyright can be determined by auditing revenues    less costs pertaining to works protected by the copyright. Another    way to value a copyright is by examining established royalties    actually paid by third parties, or by calculating a reasonable    royalty based on a hypothetic al arms length transaction pursuant    to the Georgia Pacific opinion. Keep in mind that only value    attributed specifically to the copyright in question is appropriate    to consider. Accordingly, apportionment issues may factor into    the calculation."

Tyler T. Ochoa
Associate Professor
Whittier Law School
<tochoa[_at_]law.whittier.edu> Received on Fri Jul 21 2000 - 21:15:05 GMT