Schedule E

Forum|Forum|6 years ago
February 21, 2020
2 replies
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I have gas royalties and rental income on the same property. Last year I had a CPA file my taxes and the schedule E shows the rent and the royalty on the Schedule E. I'm getting an error message in my analysis saying I can't have the same address for the rental income and the royalty. Why could the CPA file this way and Turbo tax won't let me.

Best answer by ThomasM125

You need to make two entries. One for the Rental income and one for the Royalty income. So, you will end up with one schedule E, but two separate entries on it. If you look at your schedule E from last year, you will see one schedule but two separate columns on it.

So, set up one property for the rental. Then do an entirely separate property for the royalty. They can have the same address if you do it this way.

ThomasM125Answer

Level 15

So, set up one property for the rental. Then do an entirely separate property for the royalty. They can have the same address if you do it this way.

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waeapjAuthor

Level 2

Thanks for the response. I did make a separate 1099- Misc for the income on the rental and it's expenses and the income on the royalty. On the schedule E is shows an A and B column showing the two different entries with the itemized expenses. But then, the Schedule E worksheet shows red on the rent income. Saying Income on rental real estate and income from royalties must be reported as separate properties on Schedule E." Can I still file even if the system is flagging this?

ThomasM125

Level 15

I just did an entry like you described and didn't have any trouble. You may need to delete the rental entry and re-enter it. Something must be in the wrong place, if you delete and re-enter that may resolve the issue.

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