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A Taxpayer Sells a Patent on a New Algorithm for a Gain.Which

Question 3

Multiple Choice

A taxpayer sells a patent on a new algorithm for a gain.Which taxpayer will be allowed capital gain treatment for the sale? Assume that the patent had not been placed in service as of the acquisition date.


A) a sole proprietor who purchased the patent from the inventor
B) a corporation who purchased the patent from the inventor
C) both of the above
D) none of the above

Correct Answer:

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