Opinion ID: 1158648
Heading Depth: 1
Heading Rank: 1

Heading: deduction

Text: Commission argues Taxpayer's deduction is properly characterized as an ordinary business loss rather than amortization of a capital asset. We disagree. This argument ignores the fundamental nature of copyright, confusing the intangible property rights thereunder with the tangible object thereby protected. Michael Todd Company vs. County of Los Angeles , 57 Cal. (2d) 684, 371 P. (2d) 340, 21 Cal. Rptr. 604 (1962). See 17 U.S.C. §§ 101, et seq. (Former 17 U.S.C. §§ 1, et seq. ). A copyright is intangible personal property. S.C. Code Ann. § 12-7-20 (6 and 7) (1976 and Supp. 1984). In the hands of Taxpayer, these copyrights are capital assets. S.C. Code Ann. § 12-7-670(3) (1976 and Supp. 1984). A taxpayer may deduct the amortized value of intangible capital assets. S.C. Code Ann. § 12-7-700(8) (as amended 1977); Treas. Reg. § 1.167(a)-3; Twentieth Century-Fox Film Corp. v. C.I.R. , 372 F. (2d) 281 (2d Cir.1967). We hold this deduction was properly taken.