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Level 2
September 30, 2023
Question

How do I report the income from the sale of a screenplay sold after death with proceeds paid to his Trust?

  • September 30, 2023
  • 1 reply
  • 11 views
This will be reported on Form 1041.  He also receives residuals on his writing.  Is that "Other Income" on Line 8 or Schedule E (royalties)?
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1 reply

BobKamman
Level 15
September 30, 2023

What was sold -- the screenplay itself, which he wrote before death, or just the rights to a screenplay based on a different work (novel or play) that he created?  One might be income in respect of decedent, the other might be capital gain (with stepped-up basis).  

LJC61Author
Level 2
September 30, 2023

The screenplay he wrote before death.  He receives residuals on other written work.