1099-MISC

Forum|Forum|6 years ago
February 5, 2020
2 replies
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I received a 1099-Misc for oil well royalties on property my Mother owns. How do I report this as investment property if I don't own it?

Not A Product Question

DavidD66

Level 15

The best way to resolve this would be to get the issuer of the 1099-MISC to correct it/reissue to your mother. Another option would be to treat it as nominee income, and issue your mother a Form 1099-MISC. Show the 100% of the 1099Misc for Royalties Income on your return (as IRS matches these documents. Then take a deduction under "Other: expenses, and list your mother's name and dollar amount.

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Carl

Level 11

How do I report this as investment property if I don't own it?

For starters, if it's your mother's SSN on the 1099-MISC then "you" don't report it on your tax return. Your mother reports it on her own tax return.

next, for whoever that 1099-MISC is issued to (your mother I assume) they do not have any investment property. It's royalty income that's reported in box 2 of that 1099-MISC. When the program asks you for the address of the royalty property (which I think the wording of that question is very misleading) you enter the physical address of the property - weather the recipient actually owns the property or not.

They are reporting royalty income - not property income. Two totally different things as the recipient of royalty income is not required to actually own the property that produces that income.