How do I record expenses associated with Oil and Gas Royalty income on a partnership return Form 1065?

[PatriciaV]

Yes, using TurboTax Business, expenses relating to Royalty Income may be entered under Federal Taxes >> Deductions >> Business Expenses >> All Other Expenses (see screenshot #1 below - click to enlarge), using a custom description (Production Taxes, for example). You may also report property taxes paid on the mineral rights (if any) under Taxes and Licenses.

Royalty Income reported on Form 1099-MISC Box 2 is entered under Federal Taxes >> Income >> Other Income >> Royalty Income (screenshot #2).

Please note that TurboTax Business is the only product that can be used to file Form 1065 Partnership Income.