"Today" <today[at]houston.rr.com> wrote:

- quote -

This seems to be a question of contract law, not tax law.
Not being a lawyer, but having been in a similar situation,
I would say that the corporation could decide to change its
mind and offer the inventor a royalty. The corporation
obviously has no obligation to do so.

However, if I were in your situation I would check with a
real lawyer instead of me :-)

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

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Today" <today[at]houston.rr.com> wrote:

- quote -

There's no tax rule against it. So your answer will depend
on the agreement by which the inventor "signed all rights
away." Talk to the lawyer who set up the deal in the first
place.

Stu

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Today" <today[at]houston.rr.com> writes:

- quote -

Sure. Why not?

Legally of course, if the inventor has really assigned "all
rights" to the corporation though, the corporation is likely
under no legal obligation to do so. But that wouldn't make
it illegal for the corporation to pay out a royalty if they
chose.

Best Regards,

--
Todd H.
http://toddh.net/

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Today" <today[at]houston.rr.com> writes:

- quote -

Let me guess. You set up this coporation and the agreement
without an attorney and a tax professional?

The very simple problem you will face when audited is an
IRS auditor recalassifying your royalties as dividends so
they can be taxed on the corporate return and again on
your return.

The auditor my choose to disallow the corporation and treat
the royalties as paid to you and tack on the interest and
penalties related to not filing a Schedule C.

You need a tax professional and then an attorney.

Dick

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

inventor is sole owner of a corporation
inventor signs away all right in a patent to the corporation
can corporation pay inventor royalties on the patent, after
inventor has signed all rights away to the corporation?

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >