[A_Former_Democrat]

Should this not be “royalty income” reportable on Sch. E?

[texas booster]

Royalties or business income?

It all depends on how it was reported. 1099-Misc (which many who get side jobs enjoy) or on a 1098.

One can still deduct the expenses of creating the royalties on their Sch E.

Not sure why there would be a need to create a Schedule C business.

In fact, I would call it improper advice.

[texas booster]

In fact, as president, shouldn't such income be sent into a blind trust after paying taxes?

I would advise anyone getting $7 mill in income to create a corporation to handle the income. Any good CPA should be able to decide which is the correct corp to create.

Leaves the businessman/taxpayer too open for liability issues.

How do FReepers handle their royalty income?

[freespirited]

I doubt it. Figure that he has accountants who know where to report this kind of income.

My best guess would be that somewhere in the 500 trillion pages of output from the IRS there is a finding that authors have to report their income on Schedule C.