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If I have a patent I have received and contribute it to an…

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If I have a patent...
If I have a patent I have received and contribute it to an LLC for the equivalent of its current value, am I subject to tax at the time of the transfer?
Submitted: 4 months ago.Category: Finance
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Answered in 10 minutes by:
5/1/2018
Financial Professional: TaxRobin, Senior Advisor replied 4 months ago
TaxRobin
TaxRobin, Senior Advisor
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Satisfied Customers: 18,640
Experience: 15 years of experience in financial advising with emphasis on tax issues.
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Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

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Financial Professional: TaxRobin, Senior Advisor replied 4 months ago

Transferring the patent to the LLC is not a taxable event. The LLC members will own the patent and will pay tax on any income form the patent. Should the LLC later sale then the tax is paid by any member of the LLC.

You do not pay tax on the transfer to the LLC.

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Financial Professional: TaxRobin, Senior Advisor replied 4 months ago

Please post below so I know you have read and understand my response.

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Customer reply replied 4 months ago
thank you. would it make a difference if it was a C corp?
Financial Professional: TaxRobin, Senior Advisor replied 4 months ago

You are most welcome.
To a C corp is a sale.
A positive 5 star rating is appreciated so I am credited for assisting. Scroll up to see the STARS

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