Royalty income requiring considerable effort to earn the income is typically treated as
A)Employment income
B)Business income
C)Property income
D)Other income

Question

Quizplus · Accepted Answer

Royalty income that requires considerable effort to earn is usually considered business income. This is because the individual is actively participating in the creation or production of intellectual property, such as writing a book or composing a song, and then licensing the use of that property to others for a fee. As such, this income is seen as being generated through a business activity, rather than passively through property ownership or traditional employment.

Royalty Income Requiring Considerable Effort to Earn the Income Is