Which, if any or all, of the following royalties are taxable as ordinary income?
- Copyrights
- Patents
- Mineral properties
- All of the above
- None of the above
Answer - D. All of the above
Royalties from copyrights, patents, and oil, gas, and mineral properties are taxable as ordinary income. For more information about income see IRS Publication 525 - Taxable and Nontaxable Income.