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    Royalty Income

    A college professor wrote a book years ago for which he continues to receive annual royalties.
    Are the royalties Sch C or Sch E income?

    #2
    Schedule C.

    If you're not convinced, go look at Obama's return and you'll see his royalties on Schedule C.

    Comment


      #3
      Maybe

      From the instruction Schedule E

      Line 4,
      Report on line 4 royalties from oil,gas,copyrights, and patents.

      If you are in business as a self-employed writer, invertor, artist, etc. report your royalty income and expense on Schedule C.

      My question would be; is he in business as a self-employed writer.

      Comment


        #4
        See Revenue Ruling 68-498 which says 1 book not C, Revised or 2 is C.
        JG

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