The Tax Advisor seems to contradict Mary Ellen? What is the answer?
I am no longer "in the business" of writing books, but was several years ago and still receive revenue and royalties....although very minimal. I have been dong a Sch C for several years, but seems like overkill for a few dollars. I am happy to pay more tax and call it investment income for the simplicity.
Mary Ellen says: "If you are no longer in the business of writer, you would report your royaly on Schedule E, and not on Schedule C."
Tax Advisor 12/2013 says: "royalty income should be classified as business income for individuals who were in the business at the time the intellectual property was created."
