Individual inventor selling patent gets LTCG treatment regardless of holding period.
IRC §1235 grants long-term capital gains treatment to individual inventors selling ALL substantial rights in a patent — regardless of holding period, regardless of whether inventor is a 'dealer.' Applies to natural person or their financier (backer). Turns what would be ordinary royalty income into 15–20% LTCG. Post-TCJA §1221(a)(3) excludes self-created patents from cap-asset treatment for POST-2017 creation — but §1235 override still applies to individual inventors.
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Move trademarks/patents to NV/DE holdco, license back to opco, deduct royalties at state level.
Buy music catalogs at 8–15x annual royalties — 6–12% cash yield + upside.
Sell forward-flow of your royalties for a lump sum — David Bowie's original playbook.
Own your brand personally, license to your C-corp for arms-length royalty.
TCJA forces 5-yr (US) / 15-yr (foreign) amortization of R&D — plan expense timing carefully.
Get 6–14% credit on qualified R&D wages, supplies, contract research — plus state credit stack.
Sell franchise rights: retained significant power = ordinary income; full transfer = cap gains.
Cost-share IP dev between US parent + foreign sub — future IP owned by low-tax jurisdiction.