Plain Language of the Change:
- Patents, inventions, designs and secret formulas are NOT capital assets for dispositions after December 31, 2017
- Applies to:
- the taxpayer who personal efforts created the property; or
- a taxpayer with a substituted or transferred basis from the taxpayer whose personal efforts created the property
- Taxed as ordinary income and not subject to lower capital gains rates
Detailed Analysis of Self-Created Property as Capital Asset
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