I received a 1099-Misc for oil leasing rights to my property. The value is listed under "rents" and I put the value in accordingly, but when I go through the TurboTax questionnaire I answer as if it's a royalty. Is this right? I receive errors at the end with Smart Check by doing this method because TT thinks I'm renting my property.
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Taxpayers typically receive a lease bonus from the party that extracts the natural resource in consideration for granting the lease. The amount of bonus payments is “Rents” in Box 1 of the 1099-MISC and you report the income as rent on Schedule E.
Thanks for the help on answering the first part of the Lease Bonus payment. Can you please address how to work thru setting up the Schedule E part of the program. The questions seem to be geared toward a traditional rental (like house rental) but in our case it's a one time payment to the right to drill on our land/mineral rights. Thanks in advance for your help.
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