Our office remains open to serve your important legal needs during these turbulent and challenging times. We are happy to schedule client consultations and client meetings by telephone or video-conference at your request.
Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

New tax law lowers corporate tax rate on intellectual property

The Tax Cuts and Jobs Act of 2017 appears to contain good news for businesses in Colorado that earn income from intellectual property. Previously, corporations might pay as much as 35 percent in taxes on royalties from patents and other intellectual property. Tax reform has lowered the corporate tax rate to 21 percent, but the act specifies a lower rate of 13.125 percent for income from intellectual property.

According to the new tax code, this rate will last for seven years. A slight increase to 16.4 percent will apply thereafter. This feature of the tax law might induce corporations that are currently holding their intellectual property assets in overseas companies to bring them back  to the United States. Such companies might gain a lower tax rate domestically while actually bringing a taxable asset into the country.

Another provision of the tax law, however, might have a negative impact on individuals who hold patents. Under the old system, tax law viewed patents held by individual creators as capital assets. When people sold these assets, they were taxed at the lower capital gains rate. The new tax act now takes away the status of capital assets from individuals, which could expose their sales of intellectual property to higher tax rates.

With so many tax changes on the horizon, a person or company that owns intellectual property might want legal advice. An attorney could evaluate the tax consequences of the sale or purchase of patents or the creation of a licensing agreement that produces royalty income. After researching how the law could apply to a specific business situation, an attorney could recommend how to time a transaction or plan for the taxation of the proceeds.

“I used the Bryan E. Kuhn, Counselor at Law, P.C. team to help me with a case. They were always professional, upfront, and positive providing guidance while keeping me informed.”
– L.H.

“Everyone at the firm was professional, responsive and courteous. I would definitely recommend this firm if you are in need of superior legal assistance.”
– J.S.

“Bryan and his law firm operate with great professionalism and personal touch. I appreciated the way he and his team offered transparent communication.”
– N.S.

“The team was very professional in helping me to get through an uncomfortable ADA situation at my workplace. This was a very good legal experience. I would recommend Bryan E. Kuhn & team to anyone who needs work related legal help.”
– D.L.

“Bryan, Katie, and all the staff in this office are super fast to respond, expert in their fields, and always helpful. We have been extremely pleased with their services for our small business.”
– T.Z.

Archives

Contact Our Firm

Office Location

Bryan E. Kuhn, Counselor at Law, P.C.
1660 Lincoln Street Suite 2330
Denver, CO 80264

Local: 303-424-4286
Toll Free: 866-693-5541
Fax: 303-425-4013
Denver Law Office Map
FindLaw Network
Click for the BBB Business Review of this Attorneys & Lawyers - Employment Litigation in Denver CO