When royalty income is received,the recipient (tax payer)generally reports the income on which form?

Question

Quizplus · Accepted Answer

Royalty income is generally reported on Schedule E, which is used to report rental income, royalties, partnerships, and S corporation income. Schedule D is used to report capital gains and losses, Schedule K-1 is used to report income from partnerships, and 1099-MISC is used to report various types of income, including non-employee compensation. None of these forms are directly applicable to royalty income.

When Royalty Income Is Received,the Recipient (Tax Payer)generally Reports the Income