Article Writing Software

3 Comments »

1. nljth123 said :
   November 23, 2009 at 1:19 am

   
   

   Are Proceeds from the sale of software source code taxable?
   I sold the source code to a website application I wrote for $15,000 to a friend who intends to use this source code for his own business venture. Are the proceeds from this sale taxable?

2. Steve said :
   November 23, 2009 at 6:21 am

   
   

   For income tax, they definitely are.

   For sales tax, it could be. Some states tax pre-written software while exemptiong custom software. So, the sale to your friend may not be subject to sales tax. Any subsequent sales could be subject to sales tax. It depends on the state’s sales tax laws.
   References :

3. jwishz said :
   November 23, 2009 at 6:23 am

   
   

   ALL sources of income are reportable. If this is your only non-employee income, you will use a Schedule C to record the income less any expenses which may apply AND an SE.

   Here are links for the two forms

   C: http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

   If you are asking about sales tax, you will have to check with your state and local taxing authorities. Don’t have enough info to answer that

   SE: http://www.irs.gov/pub/irs-pdf/f1040sse.pdf
   References :
   retired cpa

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