[Vendome]

You’re correct.

I went back and read the post.

So what will passive income such as royalties be treated.

My income is pretty much royalty.

That is I do something once and get paid on it over and over , year after year.....

I occasionally get upfront monies from vendors but, mostly I earn residual like from an oil well, singing a song or making a movie.

[thackney]

Oil well royalties are not like movie rights royalties.

With the movie, you do the work once and other people use the same product over and over without diminishing the initial product.

Oil royalties is more like selling apples from your roadside stand. Each barrel of oil goes away from your possession, it is consumed by others and gone forever.