4.9.4 Basic Quiz -- Royalties from Intellectual Property

A payment made to a composer out of the proceeds resulting from the performance of his or her work is a royalty.

True False

A tax deduction may be available to a person who gives his or her royalty interest to charity.

True False

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.

True False

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.

True False

A person who owns the right to receive royalties from a patent may give that right to charity.

True False

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.

True False

A royalty interest may be transferred separately from the underlying asset that generates the royalty.

True False

Royalty interests are transferred using different mechanisms depending upon the type of underlying asset that generates the royalty.

True False

A royalty interest does not have a value apart from the underlying asset that generates the royalty.

True False

A royalty interest is a tangible property right.