hgtc
Level 5
04-02-2020
07:37 PM
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A doctor received royalty incomes on certain products he invented. On schedule E, his total royalty related expenses are more than royalty incomes received. Are losses tax deductible?
And, is this type of royalty incomes passive or non-passive?
Thanks.
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sjrcpa
Level 15
04-02-2020
07:52 PM
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What kind of expenses? Are you sure this goes on Schedule E and not Schedule C?
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loricpa100
Level 4
04-02-2020
11:33 PM
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I agree, often Royalties from professionals (especially within their line of specialty knowledge) go on Sch C - and then you can take the loss. If you keep them on E you will be limited.
hgtc
Level 5
04-03-2020
12:13 PM
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good suggestion. I will ask him for more detail about this patent activity. thanks.