When it comes to taxes, rental income and royalty income are two physically separate activities, and each is reported in it's own right on SCH E. For example, the rental related stuff will be in column A and the royalty stuff will be in column B. Even if you receive a 1099-MISC with both the rental and royalty income on it. You enter it in the program "as if" you received a physically separate 1099-MISC for each.
While they do require a physical address for rental income, it is not necessary for royalty income.
Is this a case where for example, an oil drilling company is renting raw land you own to drill on, and also paying you royalty for the oil they get? If so, its perfectly possible that raw land does not have a physical "address" listed with the post office. In such a case, there's a number of things you can do to satisfy the address requirement. But what you do, depends on the details of your specific situation.
