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?
Are the royalties Sch C or Sch E income?
-
-
Schedule C.
If you're not convinced, go look at Obama's return and you'll see his royalties on Schedule C. -
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
-
See Revenue Ruling 68-498 which says 1 book not C, Revised or 2 is C.JGComment
Comment