Members of the Maryland Association of Certified Public...

Tax questions

March 10, 1998

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Q: My husband had royalty income in 1997 of $700 from a book that he wrote. Where would that be reported on our tax return?

A: If a taxpayer is in business as a self-employed writer, inventor, artist, etc. the taxpayer must report royalty income and expenses on Schedule C or C-EZ. When a taxpayer keeps his books on a cash basis, he has income for the year in which payment was actually received, or, if before the year, monies are set apart so that they may be drawn upon by him, even if he has not actually received them.

James F. Kerich, CPA

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

To ask a tax question, call Sundial, The Sun's telephone information service, at (410) 783-1800. Call 268-7736 in Anne Arundel County, 836-5028 in Harford County, 848-0338 in Carroll County. Using a Touch-Tone phone, punch in the four-digit code 6225 after the greeting. You can also submit questions by e-mail through The Sun's Web site:

Selected questions will be answered in the Business section. No questions will be answered personally.

Pub Date: 3/10/98

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