Brian Clark

May 1, 2024 | jdsupra.com | Brian Clark

Intellectual property (“IP”) is typically monetized either by sale or (royalty generating) license agreements. The Code[1] often allows sales to be taxed at preferential capital gains rates[2] while simple royalties are ordinary income.[3] At present the maximum capital gain versus ordinary income rate differential for non-corporate taxpayers – without more[4] – is seventeen percent[5] which is not immaterial.

Apr 22, 2024 | jdsupra.com | Brian Clark

In addition to being developed in-house, intellectual property (“IP”) can obviously be acquired from third parties. IP acquisitions may be more germane now than in the recent past as developers race to create and monetize artificial intelligence (“AI”) tools. But, while AI platforms might be the shiniest and most interesting objects in the current IP arena, acquirers still have to deal with much older (and mundane) tax questions like: (i) what is being acquired and (ii) how is its cost recovered?

Apr 10, 2024 | jdsupra.com | Brian Clark

Intellectual property (“IP”) development can cost millions of dollars so cost recovery timing can be financially material. General tax principles typically require that expenses associated with creating assets having useful lives lasting longer than the current tax year are capitalized.

Dec 12, 2023 | jdsupra.com | Brian Clark

Real estate funds and family offices are two types of investors[1] that often (i) purchase equity interests in partnerships[2] and (ii) make in-kind asset distributions for tax planning purposes.[3] Well advised real estate and family office investors will work to ensure basis is appropriately accounted for to both comply with tax laws and maximize investment returns.

Jun 5, 2023 | jdsupra.com | Brian Clark |Jacob Goodman

On May 3, 2023, New York Governor, Kathy Hochul, signed the state budget legislation which will incrementally increase the state's minimum wage. The increases will maintain the state's tiered approach, whereby New York City, Long Island, and Westchester County will have a higher minimum wage than the rest of the state. Additionally, after incremental increases over the next three years, the minimum wage will be indexed to the consumer price index and will increase with inflation.