ST Alpha - "The key is "for foriegn use" and it's only for royalties to use the patent. " (Reading a Post)

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In response to "i think this is the thing in the senate tax bill i find the most bizarre, given the lead up rhetoric" by x

The key is "for foriegn use" and it's only for royalties to use the patent.

Posted by spamlet Nov 29 '17, 05:50

You can't just put something patented in a widget and claim the entire income is royalties. The IRS will audit that right out.

In theory you could play around with royalty rates on intangible items like software but there's a different section that limits the ability to deduct payment to foriegn related companies above a threshold of earnings before income taxes which is a really low bar if you're trying to move stuff around (especially when coupled with immediate expensing of tangible property).

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hmmm, ok....nm - x Nov 29, 05:53 1
- Plus the IP is already gone. It's not like they'll wake up tomorrow and figure this out. - spamlet Nov 29, 06:03

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The key is "for foriegn use" and it's only for royalties to use the patent.

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