Please help. I used your methodology for entering royalty income for a patent. However, this method basically enters the amount as ordinary income at a high rate of taxation. Under IRS Code 1235, patent income is qualified for categorization as Long Term Capital Gains so is subject to a MAXIMUM of 20% taxation based on income. It is essential that I get the benefit of the 20% taxation rather than the higher rate.
How can I do this within Turbo Tax?
The method you suggested calculates the tax in the exact same manner as if I enter the 1099 under business income with the other 1099s for my self employment income that is outside of my regular job.
Any suggestions that you can make would be most appreciated! Thanks.
