Financial tip of the day.com - FREEDOM THROUGH FINANCE
Social Sites
  • Financial Tip Of The Day
  • Books
  • Websites
  • Contact Us
  • Disclosure

LIKE THAT SONG? BUY IT!

13/3/2014

0 Comments

 
Picture
That's right if you're looking for an alternative investment than you might want to look at buying some songs, literally!

Copyright investments are a big business shelling out over $6 billion a year in royalty income. Every time a song is bought or played for a commercial pursuit a royalty is paid to the owner. These investments can generate some hefty returns that consistently bring in 10-15% returns on investments. Along with a potential capital gain later on.

One of the most famous is the purchase of older Beatles songs by Michael Jackson in 1985 for almost $48 million. He later merged these songs with others and eventually sold them for almost $1 billion.

There's a problem for most of us though. Unless you've got over a million in investable assets the govt doesn't want you to have anything to do with this industry. They don't consider you "sophisticated" enough to do it. Maybe they're right because it can get complicated. Here's a few points...

Taxes: copyrighted material can be amortized over 10 years so you lost likely won't have to pay any tax on your income during that time. However, if you ever sell it than you have to pay ordinary income tax on the amount you amortized and then capital gains on the amount above that.

Legal: anything copyrighted after 1/1/1978 has a copyright for 70 years after the last writer's death and then reverts to the public domain meaning you no longer get royalties. All of this needs to be researches and known prior to purchase so that you can figure your investment return.

-Crass Cash
0 Comments



Leave a Reply.

    Author

    This website was created due to the atrociously misguided financial advice that I've heard over the decades.  Financial freedom is not intellectually strenuous, but it takes discipline. 

    RSS Feed

    Categories

    All
    BHAG UPDATE
    College Savings
    College Savings
    Credit
    Economics
    Estate Planning
    Estate Planning
    Financial Planning
    Financial Planning
    Insurance
    Investing
    INVESTMENT JOURNAL
    Mistakes
    Net Worth Update
    Retirement
    Tax
    Thrift

    Archives

    October 2017
    August 2017
    May 2017
    April 2017
    February 2017
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    January 2011

Powered by Create your own unique website with customizable templates.