Artists are taking advantage of low interest rates by selling their catalogs before a likely increase in tax rates — but the window may be closing soon to maximize returns.
Artists are taking advantage of low interest rates before a likely increase in tax rates – how long can the good times roll?
With these significant economic factors on the horizon, we are frequently asked by our artist clients “What should I do?”For recording artists earning meaningful royalties from catalogs in which they have full or part ownership -- who are considering selling before changes to the tax law -- the question of whether to proceed might feel like a double-edged sword. Yet, we crunched the numbers and the answers are both straightforward and convincing.
To offset the increase in tax rates, the royalty payment would have to rise from $1.3 million to $8.02 million if the sale of the catalog was delayed by one year. If the artist would rather sell in five years, the annual royalty payment would have to increase to $2.02 million and remain there each year for five years just to break even. And if the projects didn’t go as planned, she’d have to maintain her current income of $1.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Daniel Radcliffe Explained Why He Didn't Feel Starstruck While Making The 'Harry Potter' Films'It's sort of hard.'
Read more »
Why People Who Brush Still Get Cavities
Read more »
San Francisco’s recovery is stuttering—why is the home of innovation so poorly governed?“It’s an existential moment. What type of city we want to be…is being decided right now.” MattHaneySF of San Francisco’s Board of Supervisors tells “Checks and Balance” that covid-19 has exposed the city’s problems
Read more »
Opinion: Why stock market bulls may be right to push valuations so highOPINION: Investor sentiment right now doesn’t indicate a frothy market. And what if this optimism is justified?
Read more »
Why the Internet Soured on Chance the RapperHe was once hip-hop’s new hope. That time might be over.
Read more »