Anyone receiving royalty payments?
#17
Re: Anyone receiving royalty payments?
The serious point being that it is difficult to audit creative activity. As long as the creative person has the minimum equipment for their craft, (which in most cases won't be more than a pencil and a piece of paper) it isn't really possible to say their business has ended. I don't know how tax offices treat this problem, or if they try to.
#18
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: Anyone receiving royalty payments?
I don`t mind people being aggressive in their claims for deductions but making things up is going too far. Yet people still do it. And some get caught.
On the basis of reasonableness. In an audit the CRA might want to see some evidence of activity. The widget inventor could say that they spent hours each day on new designs but, so far, have not been successful. Also that they shredded all their drawings and notes each day to ensure that competitors did not steal them.
It is then up to the auditor to decide wither the explanation is reasonable. If they decide the explanation is not reasonable then the expenses are denied up till the time the taxpayer can prove they were legitimate.
#19
Re: Anyone receiving royalty payments?
How about if he called himself an inventor? That's a bit like writing.
The serious point being that it is difficult to audit creative activity. As long as the creative person has the minimum equipment for their craft, (which in most cases won't be more than a pencil and a piece of paper) it isn't really possible to say their business has ended. I don't know how tax offices treat this problem, or if they try to.
The serious point being that it is difficult to audit creative activity. As long as the creative person has the minimum equipment for their craft, (which in most cases won't be more than a pencil and a piece of paper) it isn't really possible to say their business has ended. I don't know how tax offices treat this problem, or if they try to.
JD Salinger, for example, published his last novel in 1965, when he was in his early 40's. He didn't die until 2010. I don't suppose there was any point he told the IRS that he'd given up being a writer. That's not fraud, just writer's block.
#20
Forum Regular
Thread Starter
Joined: Jun 2011
Location: BC
Posts: 96
Re: Anyone receiving royalty payments?
Interesting discussions folks.
What about the case where you are still proactively marketing the same works year on year (in my case, music compositions). I guess that would not be passive royalties?
What about the case where you are still proactively marketing the same works year on year (in my case, music compositions). I guess that would not be passive royalties?
#21
Re: Anyone receiving royalty payments?
http://www.cra-arc.gc.ca/tx/ndvdls/t...rylts-eng.html
#22
Re: Anyone receiving royalty payments?
This thread has just reminded me that I was a co-author on a small scale publication book many years ago, and I am probably owed some royalties. I need to check that out!