My problem is similar. I received Patent awards on 1099-MISC box 2 Royalties, when the patents were approved at the US patent office. This award is the company policy, even when you are no longer an employee. I retired several years ago. This is neither Employment income nor Investment Income. It seems to be best described as income that would be reported on Schedule 1, item 8J "Activity not engaged for profit income", per this description https://www.irs.gov/faqs/interest-divid[product key removed]-of-income/1099-misc-independent-contrac....
Right now I am stuck between creating a Schedule C or creating a rental or royalty property. I guess I could call the Patent Award a royalty property but it would probably want a Schedule E input when I think the Schedule 1 input would be more appropriate.
What is the right approach to get the job done right?
I would appreciate any suggestions.
Thanks.
Jim F.
