Victor Roberts <xxx[at]lighting-research.com> wrote:

- quote -

You could have just transferred it to the corporation
in exchange for stock. As long as you own 80% of the
corporation's stock after the transaction, the
transaction isn't recognized for tax purposes.

If you transferred the patent application for some stock
and $1, the cash is fully taxable. But it's not wages
so I don't think it should be subject to social security
and similar taxes.

Stu

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

I'm the sole employee of my C Corp. I just assigned the
patent application for an invention to the corporation for
the nominal sum of $1.00. The last time I did this I worked
for a major corporation and assigned all my intentions to
them, but I don't remember how the assignment payment was
treated.

I assume this $1.00 is normal income and is subject to
federal and state income tax AND Social Security and
Medicare tax. Is this correct?

--
Vic Roberts
Replace xxx with vdr in e-mail address.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >