Do royalties rec'd from writing a book qualify for sec 199A deduction

[itonewbie · Accepted solution]

This is becoming like a game of Wheel of Fortune, where the OP already has the puzzle set up and we really just need to solve it according to the preconceived notion.

Now that I know the vowel that George bought isn't in the puzzle and some consonants Jeff chose are in it, Pat, I'd like to solve the puzzle please!

Writing "A" book is generally not an activity that is regular, continuous, or substantial enough to rise to the level of a §162 trade or business.  I believe there've been various court rulings to that effect, which is consistent with how the law has been interpreted for other types of ventures.

Unless the royalty is for a qualified trade or business, the income of which would be reportable on Sch C and subject to SE-tax, the royalty income, prima facie, should not be eligible for QBI deduction.

[George4Tacks]

I would enter them on Schedule C and answer YES

[IRonMaN]

I would enter them on Schedule C and answer NO.

Well, I might answer YES, if I knew more information about the taxpayer, but I've developed an allergy to "not helpful" votes.  George is allergy free.