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Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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For federal tax purposes, royalty income which is not ...

Resolved Question:

For federal tax purposes, royalty income which is not derived in the ordinary course of a business is classifiede as: portfolio income, active income, passive income or none of the above:
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

That is portfolio income - interest, dividends, royalties, annuities, gain from the sale of portfolio assets, etc.

see for reference -

What is portfolio income? If you didn't earn it in your business or as wages, it's generally portfolio income. That includes interest, dividends, annuities and royalties from property held for investment. It also includes gains from the sale of properties that produce portfolio income or that you hold for investment. However, if you receive interest in the course of your business, that interest income is not portfolio income.

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