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I pay a friend a % of royalties I contractually receive from a company's use of patent. Can I deduct these payments to him? Where in TT do I report the payments to him?
When a patent was awarded to my husband, he verbally agreed to give his friend 15% of all future royalties he might receive on his patent (up to a particular dollar amount). He did this because his friend fronted the money for patent attorney fees and several other expenses related to development. Husband now contractually receives royalties from a company (receives 1099-MISC with $ in Box 2 (Royalties)).
We file Sched C to note the Royalty payments. Can we deduct the payments to his friend? Where in TT do I record those payments.
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June 4, 2019
3:24 PM
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Investors & landlords
In TurboTax when you are listing the expenses on the Sch C Royalty, you would go to last expense area listed "Other Miscellaneous Expenses" and list his name and then the amount he was paid in 2017.
June 4, 2019
3:24 PM