Are royalties non-taxable for the Local Income Tax?
Rental income is non-taxable for local income purposes. What about royalties (from copyright, patents, etc.)? Both are passive income -- you don't actively participate in order to receive the income. Also, Schedule E in the federal tax return lists both rental and royalty payments as passive income! Does anyone have a clue? Royalties are not mentioned at all as taxable or non-taxable in any of the local earned income tax return instructions I have read. Suspicious loophole here? Thanks.
Last edited by jeanboy; 04-13-2009 at 11:35 AM..
Reason: added additional details
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