| Nowadays many people have their wealth in | | | | Different intellectual properties like |
| both tangible and intangible assets. These | | | | copyrights, patents etc use different methods |
| intangible assets are also known as | | | | to decide the market value of the property. |
| intellectual property. It includes patents, | | | | On the basis of these findings, the value of |
| copyrights, trademarks and even trade | | | | the intellectual property is added to the |
| secrets. Many a times the value people are in | | | | gross estate. The valuation analysis is |
| possession of thus is much higher than the | | | | subjective and so the ideal method to choose |
| physical assets. | | | | is the one that will give you the lowest |
| | | | value. Although this may not be the best |
| The commercialization and widespread use of | | | | method when valuation is done for other |
| the Internet provides everyone the chance to | | | | purposes, but it is highly recommended when |
| create intellectual property. This is no | | | | the main objective is to calculate your tax |
| longer restricted to the large Multi National | | | | liability. |
| Corporations or the affluent few. Everyone | | | | |
| has the right and the capability to develop | | | | Many a times the value of the intellectual |
| such property with the help of copyrights, | | | | property will be higher than the value of the |
| trademarks or inventions that can be | | | | liquid cash or assets that are available in |
| patented. Although the intellectual property | | | | hand. This means that you will not have |
| grows as a wealth-creating tool, it is added | | | | sufficient cash to pay the taxes. If and when |
| to your estate taxes. You will also be faced | | | | you are in such a situation, then you will be |
| with the task of determining the value of | | | | required to sell some part of your estate to |
| this property so that it can be added to your | | | | meet the expenses. You also have the |
| estate to calculate the taxes. | | | | alternative to utilize the tax payment |
| | | | deferment that the Internal Revenue Code(IRS) |
| A person's intellectual property, especially | | | | allows the taxpayers. Code 6161 of the IRS |
| copyrights, make a lot of difference while | | | | allows a deferment of estate taxes for up to |
| estimating the estate taxes. It is necessary | | | | ten years as long as a reasonable cause is |
| to know the value of all the assets including | | | | provided by you. |
| the intellectual property to be able to find | | | | |
| out the value of the estate. When calculating | | | | One of the causes that the IRS considers |
| the value of the gross estate, it will also | | | | reasonable is proof showing that the taxes |
| include retirement accounts, joint property | | | | cannot be paid due to the illiquid |
| etc. As of now, the maximum limit up to which | | | | intellectual assets that encompass your |
| the estate tax is exempt is $2 million. In | | | | estate. You are given time to consider the |
| 2009, this limit is said to be increased to a | | | | other options available to you to make the |
| sum of $3.5 million. | | | | payments and ensure that you do not take some |
| | | | hasty decision like selling property. |
| The valuation of the intellectual property is | | | | Nevertheless, you will be entitled to pay |
| based on the fair market value of the | | | | interest on the differed payment. |
| property on the day of the person's death. | | | | |