- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
If you created the video yourself, your income will generally be reported on Schedule C. However, this issue is fuzzy (as you have noticed) and determining which approach to take is something you must decide. Here is some detail to help you with the decision:
The IRS has ruled that an person who writes only one book (or creates only one video) as a sideline and never revises it is not regularly engaged in an occupation or profession, and the royalties are not considered earnings from self-employment. However, preparing new editions and creating new materials reflect the conduct of a trade or business.
Even though an individual is not currently involved in his or her creative pursuit of income, any royalties received are business income if the individual was engaged in the business at the time the material generating the royalties was produced. Therefore, royalty income should be classified as business income for individuals who were in the business at the time the intellectual property was created.