Authored by: argee on Friday, January 04 2013 @ 11:28 PM EST |
You are saying that if patents were taxable, and
company A sues company B over a patent, and they claim
the patent is worth $1 million, the that immediately
established the worth of the patent at $1 million and they
have to pay taxes on that.
But, I do not see patents as being taxable at all. If I
buy a patent, or an airplane, for $1 million, I do not have
to pay a thin dime on that. The seller might.
Now I have this airplane or patent in my possession,
valued at $1 million. I could then depreciate it over
the life of the asset, say I depreciate to 0, I could
then deduct $50K each year for the 20 years life.
If anything, purchasing an asset gives me a tax advantage.
Now, if instead of depreciating it, I SELL it for $1.5
million, then I have a capital gains of 0.5 million and
that is taxable.
It is like Gold Mining. You dig up $1 million worth of
gold, you pay exactly zero taxes on it. In fact, you
can deduct the costs of the digging, and the depreciation
on the equipment to dig it up. The bag or ingot of gold
sits there in your vault tax free.
But when you SELL the gold, then ... that is different.
The price brought by the gold on the market is income
that is (after deductions and credit) taxable.
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