Income from creative works (artists, writers, musicians) would be considered self-employment income and be reported on Schedule C. Some would say this belongs on a schedule E if you are not 'in the business' of writing. But this royalty represents real work that you did in 2009 and differs from investment activities where one can contribute just money to a royalty activity. The topic is a confusing one and you should consult a CPA or EA for clarification.
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