The Statistics by Form page includes statistics on the 140,040,871 returns in 2009. 6,210,424 claimed Rent and royalty net income and 5,762,870 claimed Rent and royalty net loss.

I had to deal with two attroneys, a bank, a business owner/seller, a commercial lender, the SBA, building inspectors, maintenance guys, title people and getting oil and gas royalties cleared up, existing tenants and a possible issue of an easement by adverse possession.

It is really a Medicare surcharge on investment income (which also includes dividends, interest, and royalties) levied on high income tax payers.

Salary & wages (15%), Royalties (10%), Depreciation (8%), etc.

(If he wants 50 quadzillion dollars and first born royalty for a run down shack you are not in a hurry.

For instance, Oil and gas rights and royalty interests in mineral resources are considered real estate for purposes of 1031. 

From a practical point if they ever pursued it....they have not done anything with the space, obviously they are not paying any royalties to the owner, so I’d confidently argue they have abandoned the agreement/space. 

Passive income is interest, dividends, royalties, rent from real property, or the future sale of an asset held to produce such passive income.  

Royalty streams can qualify through An exchange, with an income.

I can cut 1-800-Junk in half because I have lower head (no franchise fee, dues or royalty’s.