Discussion:Artwork of amateur foreign photographers

First, here's the background of this client. He is a foreign citizen on a temporary status in the US. He lived and worked here legally for 12 years (I can't see how 12 years can be construed temporary, but I know nothing about immigration). He filed regular 1040 (not 1040NR) for the last 8 years. He certainly fulfilled physical presence test and should file as a permanent resident of USA. He explains to me that he can only work for his current employer (sponsor) in the US. He cannot have any self-employment income or other income that could be construed by immigration as an income from some other employment in the US. In addition, the client has been an amateur photographer for many years. He has made numerous pictures of all kind (nature, models, etc) for his own sake and some for his friends... He also explains me that he holds copyright to all of his work (pictures).

Here are specific questions that I am trying to find right answers to.

1). A US agency wants to buy copyright to one of his photos. Some relative of his became a model. Originally (4-5 years ago), he made his cousin's pictures for free to use in the portfolio. Essentially, the client holds an artwork with zero cost basis. If he sells the copyright to another company, then all of the income is gain, right? Or, is it a self-employment income?

2). Similar to #1 above, but now, the US agency wants to rent/use one of the client's photos with the client's permission. They pay him money for this. Again, what type of other income is this? Self-employment? Or, could it be a rent income from the asset (artwork) that the client owns?

Thank you for your input in advance.

Your client should always have legal representation when applying for visa renewals, as an immigration lawyer will have many years of experience in how best to phrase the issue so as to render it innocuous.