I get oil revenues. I am being asked if this is a qualified business on schedule e. What is considered a qualified business? There is no guidance.

[KittyM · Accepted solution]

Oil royalties are considered "portfolio" or "investment income".  Investment income includes gross income from interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business. 

So, unless you have a "working interest" in the oil well or wells (which would be reported on Schedule C), your oil rents or royalties would not be considered Qualified Business Income.