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You are going to need form 8949 to input this into schedule D. You will put "transfer of patent rights" as the description of the asset, with a cost basis of 0. This will get your payments taxed as a long term capital gain.
Form 8949 feeds schedule D
Make sure you put this in part II
If you put it in part I it will be taxed as ordinary income, and you don't want that so make sure you put it to part II
This is quick! So I will need to fill out Part II of form 8949. I should check box (C) and do a separate Part II from the one for stocks, right? Thanks!
Yes, that is correct - check box C because this is not reported on form 1099-B
This will come on a 1099-MISC
Probably the last question about this issue. If I submit a 1040X, I should send the amended 8949 and schedule D along with the 1040X?
Yes, you would submit any form that changes along with the 1040X
Thank you. XXXXX get a record of this so that I can go back to your answers later?
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