For Self-Created Musical Works, Special Tax Rules ApplyMay 13, 2008 The Legal Intelligencer
The Internal Revenue Service recently issued proposed and temporary regulations specifying the time and manner for making an election to treat the sale or exchange of "self-created" musical compositions or copyrights in musical works as the sale or the exchange of a capital asset resulting in a potential capital gain. The regulations reflect changes to the law made by the Tax Increase Prevention and Reconciliation Act of 2005 and the Tax Relief and Health Care Act of 2006. Prior to these changes to the law, the sale or exchange of musical compositions or copyrights in musical works created by the taxpayer resulted in ordinary income.
Read the full article at http://www.thelegalintelligencer.com.