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Tax Opportunity

In:

Submitted By att102
Words 771
Pages 4
In response to your request for potential employer provided benefits that should qualify for tax free status, I respectfully submit the following areas for exploration with a more detailed explanation subsequently:
1) Income provided to employees whose work results in a patent
2) Commuter costs
3) Gym Membership
4) Modification of existing dependent care assistance qualifications “Patent” related Income
While not a primary focus of tax collections, it is in the interest of government to encourage innovation in order to improve and enhance the competitive standing of the country. Numerous “economic” related considerations are currently given to corporations when research and development activities are concerned as businesses can already deduct the expenses incurred in the development of a patent on an amortized or immediate basis. Given that a significant portion of patent development is based on employee time & effort, the government should expand the tax benefit of these activities to include the income that an employee receives for this work on their individual returns. This would apply not only to salaries but also any bonuses / additional considerations provided to the employee for the successful development of the patent. In order to qualify for this treatment, the income being excluded must mirror the expenses that the business is including for exclusion as part of their research and development credits on the business’s tax returns. For individuals that develop a patent through a personal invention and not in the employment of a business, the taxable exclusion would be applicable to the income generated from the sale of the patent to a business for the purpose of putting it in use. This benefits employees / workers in “innovation” fields of work and further encourages patent development.
Commuter Costs
Currently, IRS rules provide for the income

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