Taxation of Intellectual Property After Tax Reform: IRC 1235, FDII and GILTI, Taxation of Moving IP Offshore

Recording of a 90-minute premium CLE/CPE webinar with Q&A

Conducted on Tuesday, April 30, 2019

Recorded event now available

or call 1-800-926-7926
Course Materials

This course will provide tax counsel with practical guidance on the taxation of intellectual property (IP) assets post-tax reform. The panel will discuss the impact of tax reform on patents, design models or other IP assets created by individual taxpayers, revised Section 1221 and obtaining the benefits of Section 1235, implications foreign-derived intangible income (FDII) and global intangible low-tax income (GILTI), and key tax considerations in structuring transactions for the purchase or sale of IP assets.


Tax reform provided new rules specifically focused on the taxation of IP with unexpected consequences for inventors and holders of such assets. Tax counsel and advisers must understand the complex tax rules impacting the ownership of IP assets and implement effective techniques in structuring transactions.

Key changes from tax reform impacting IP include the reduction of the corporate tax rate to 21%, rules on FDII, applicability of the GILTI regulations and other vital considerations affecting transactions involving IP assets. Under prior tax law, patents and unpatented inventions created by an individual taxpayer were considered to be capital assets resulting in capital gains upon sale. Revised Section 1221(a)(3) now classifies these items as non-capital assets subjecting owners and holders to potentially higher tax liabilities.

Tax counsel and advisers must be knowledgeable of these complicated tax rules to adequately structure transactions involving IP assets to avoid any unintended tax liability for taxpayers.

Listen as our panel discusses the taxation of intellectual property under current U.S. tax law and offers effective planning techniques in structuring transactions involving IP assets.



  1. Taxation of IP assets under current U.S. tax law
  2. Capital gain treatment under revised Section 1221 and application of Section 1235
  3. Dynamics of FDII as applied to IP ownership and development
  4. GILTI and CFCs holding IP assets
  5. Best practices and techniques in structuring transactions for IP assets


The panel will discuss these and other key issues:

  • New tax provisions impacting the creators and holders of intellectual property
  • The dynamics of revised Section 1221 and maintaining capital gain treatment of IP
  • Understanding the benefits and pitfalls of FDII rules relating to IP
  • Application of GILTI for holders of IP assets
  • Tax planning techniques in structuring transactions involving IP assets


Bates, Stephen
Stephen Bates

Principal, International Tax Services
Ernst & Young

Mr. Bates provides tax advice to multinational corporations on transactional and controversy matters, including...  |  Read More

de Ruig, David
David N. de Ruig

Senior Manager - National Tax - International Tax Services
Ernst & Young

Mr. de Ruig recently joined EY’s National Tax ITS practice in the Silicon Valley, where he focuses on a...  |  Read More

Dunkel, Brian
Brian J. Dunkel
Senior Manager - National Tax - International Tax Services
Ernst & Young

Mr. Dunkel is a Senior Manager in the International Tax Services practice of Ernst & Young, LLP, based in Atlanta....  |  Read More

Perryman, Zachary
Zachary Perryman
Senior Manager - National Tax - International Tax Services
Ernst & Young

Mr. Perryman is a senior manager in EY’s National Tax Department, based in San Francisco. He advises clients in...  |  Read More

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Strafford will process CLE credit for one person on each recording. CPE credit is not available on recordings. All formats include course handouts.

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