Gain on sale of a patent by an inventor generally is ordinary income.

Name: Gain on sale of a patent by an inventor generally is ordinary income.
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When an inventor sells a patent, the gain is usually considered ordinary income and is subject to ordinary income tax rates. However, there are certain circumstances where the gain could be considered capital gain and subject to lower capital gains tax rates. It is recommended to consult with a tax professional for specific advice on your situation.

Gain on Sale of a Patent by an Inventor Generally