An employer of the creator of a patent cannot be a "holder" of the patent, and therefore cannot qualify for long-term capital gain treatment.

Question

Quizplus · Accepted Answer

Only the actual creator or inventor of a patent can be considered the "holder" of the patent and qualify for long-term capital gain treatment. Even if an employer owns the patent through a work for hire agreement, they still cannot be considered the holder for tax purposes.

An Employer of the Creator of a Patent Cannot Be