With technological advances, the types and definitions of “intellectual property” and “intangible assets” will change rapidly. Federal Income Taxation of Intellectual Properties & Intangible Assets is the first treatise that addresses all asset types such as corporate technology, software development, copyrights, trademarks, and patents.

Highlights in the latest update include:

• The Tax Court's decision in Peco Foods, Inc. & Subsidiaries concluding that a taxpayer is bound by the terms of a written asset purchase agreement despite claims that the allocations agreed to by the parties were inconsistent with the residual method under § 1060. ¶ 1.03[2][b][i].
• Private Letter Ruling 201214007 in which the Service concluded that the portion of the purchase price of a wind energy facility that the taxpayer attributed to a facility specific power purchase agreement was properly taken into account as part of the basis of the wind energy facility and depreciated as part of that property and not as an amortizable § 197 intangible asset. ¶ 1.04[2][b][i].
• Chief Counsel Advice 201226025 in which the Service concluded that the third-party comparable exception under Regulation § 1.199-3(i)(6)(iii)(B) did not apply because no single competitor's off-line software replicated the functionality, features, and purpose of the taxpayer's on-line software. ¶ 7.02[4].
• The promulgation of Temporary Regulations providing a bright line test that the substantial business activities requirement of § 7874 is satisfied only if at least 25 percent of the group employees, assets, and income are located or derived in the relevant foreign country. ¶ 14.10[1].