Songwriters can take advantage of provisions in the tax code that allow them to treat the sale of their musical compositions or copyrights as capital gains, enjoying far more favorable tax rates than they would if the proceeds were treated as ordinary income.
Valensi Rose Partner Michael R. Morris explained the ins and outs of this capital gains treatment in an article in the Daily Journal. A reprint of Michael’s article is available by clicking the accompanying thumbnail image.
Mr. Morris expanded the article from a presentation he made at the CalCPA Education Foundation Entertainment Industry Conference on June 22.
Michael is a former trial lawyer for the IRS and a certified specialist in taxation law. His entertainment industry clients include producers, record labels, composers, music publishers, actors, talent agencies, motion picture companies, post-production houses and Grammy-winning recording artists.
He has been named a Southern California Super Lawyer (2006-2023) and one of “L.A.’s Top 100 Lawyers” by the Los Angeles Business Journal.