Skip to Main Content
GiftLaw Pro
Charitable Giving & Tax Information Service
Back to Gift Planning Website
GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.9 Patents, Trademarks and Royalties  >  4.9.4 Royalties from Intellectual Property  >  Basic Quiz

Basic Quiz - 4.9.4 Royalties from Intellectual Property

1. A payment made to a composer out of the proceeds resulting from the performance of his or her work is a royalty.
           
2. A tax deduction may be available to a person who gives his or her royalty interest to charity.
           
3. A donor who owns a royalty interest and the underlying asset that generates the royalties and gives both the royalty interest and underlying asset to charity may deduct the fair market value of the royalty interest.
           
4. A donor who owns a royalty interest and does not own the underlying asset that generates the royalties may deduct the fair market value of the royalty interest when giving it to charity.
           
5. A person who owns the right to receive royalties from a patent may give that right to charity.
           
6. A donor may give his or her copyright to charity and get a tax deduction, but keep the right to receive royalties from the copyright.
           
7. A royalty interest may be transferred separately from the underlying asset that generates the royalty.
           
8. Royalty interests are transferred using different mechanisms depending upon the type of underlying asset that generates the royalty.
           
9. A royalty interest does not have a value apart from the underlying asset that generates the royalty.
           
10. A royalty interest is a tangible property right.