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what is the tax rate on royalty payments (income)?

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  • 1 decade ago
    Favorite Answer

    If you are a US person, then the US will tax it along with your other income. Royalties usually are taxable as ordinary income and not as capital gain. If you have a basis (cost) in the royalty-producing property you may be entitled to deductions for amortization or depletion.

    If you are neither a citizen nor a tax resident of the US -- in other words, you file a 1040NR rather than a 1040 income tax return -- then the tax rate may be anywhere from zero to 30 percent, depending upon your country of residence. In that case, no deductions would be allowed.

  • heuss
    Lv 4
    4 years ago

    Royalty Tax Rate

  • ?
    Lv 6
    4 years ago

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    RE :What is the tax rate on royalty payments (income)?

    1 following 3 answers

    Source(s): For Finance and credit solutions I always visit this site where you can find all the solutions. http://finance-solution.us/index.html?src=5YAhih52...
  • 1 decade ago

    Same as all other income.

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