Taxation of Intellectual Property: Federal Corporate Income Tax Implications

Minimizing Tax Liability and Improving Compliance in IP Ownership and Transactions

Recording of a 110-minute CPE/CLE webinar with Q&A

Conducted on Thursday, September 24, 2009

Course Materials

This seminar will prepare corporate tax professionals and their advisors to manage the compliance and planning for a variety of complex intellectual property transactions and business structures, for both federal and cross-border tax purposes.


Intellectual property is one of a corporation's most strategic assets, especially with the economy battering the values of hard assets. Corporate tax specialists and advisors must stay attuned to the complex and extensive federal tax laws and regulations addressing IP.

For example, is the IP considered a patent, trademark or copyright under tax laws and what are the resulting tax compliance implications? How are sales and licenses of IP treated differently for tax purposes? What tax planning structures are most advantageous for corporations licensing IP?

Answers to these key questions are not clear-cut, making compliance and planning more difficult for multi-state and multinational taxpayers. Proficiency with the relevant regulations and IRS guidance helps diversified companies and their advisors avoid increased tax or audit exposure.

Listen as our panel of veteran advisors, all well-versed in the tax aspects of intellectual property, brings you up to date on the important aspects of federal tax law, regs and guidance surrounding IP.



  1. Defining IP as property under Sect. 351
    1. Substantial transfer of rights
    2. Sale or license
  2. Determining classification of IP for tax purposes
    1. Patents
    2. Copyrights
    3. Trade secrets
  3. Credits and deductions for IP transactions
    1. Federal research credit
    2. Other deductions and capitalization
  4. Recent developments
    1. Newly finalized regulations on treatment of services under Sect. 482, allocation of income and deductions from intangible property
    2. Impact of the new cost sharing regs on IP transactions
    3. Review of recent court cases, guidance, regulatory changes
  5. Cross-border transactions and their tax implications
    1. Cross-border sales and licenses
    2. Joint ventures with overseas partners
    3. “Migrating IP”
    4. Transfer pricing


The panel will prepare you to sharpen your management of tax issues arising from IP transactions and business structures, by fully briefing you on the following key factors:

  • Adapting to finalized regulations for allocations and deductions of intangible property that went into effect July 31, 2009.
  • Understanding when IP is considered property under Sect. 351.
  • Determining which deductions, credits and other tax incentives your company can take against IP-related expenses.
  • Identifying which cross-border transactions involving IP will increase or decrease tax liability.
  • Evaluating the impact on taxes for IP sales vs. IP licenses.


Joseph Fletcher
Joseph Fletcher

Morrison Foerster

He has 18 years of experience advising multi-national corporations and partnership entities on federal and cross-border...  |  Read More

Arindam Mitra
Arindam Mitra

Deloitte Tax

He is a senior economist in the firm's Transfer Pricing Practice. He has advised taxpayers on complex intellectual...  |  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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