Rights to intellectual property, royalties from licenses and employment agreements are often used to close the gap on price between what the seller wants and what the buyer is willing to pay because the income generated is tax free to the recipient.

Question

Quizplus · Accepted Answer

Income generated from intellectual property, royalties, and employment agreements is not necessarily tax free, and using these income sources to close the price gap between buyer and seller is not a common practice.

Rights to Intellectual Property, Royalties from Licenses and Employment Agreements