Hate to tell you this, as this is a hassle, but turbotax is correct in treating BPT as a property in Schedule E. So now the question is how to fill out the column for this property in Schedule E? Google "BPT Tax Booklet 2022" to obtain instructions (and worksheets) on how to calculate the trust income, the administrative cost, and the depletion for each share (BPT calls them units) you own or held during 2022. The admin cost and depletion are considered expenses in Schedule E so that is what makes it worthwhile to do these hand calculations. They will reduce your income from a tax standpoint.
The first time you do this takes a long time to understand how to do it. Save your worksheets and make notes so you can do it faster in future years. Keep in mind that, whenever the units are sold, all of the depreciation will have to be recaptured. You have have to keep records on when the units where bought, and when they were sold. Depending when you purchased your units, the method for the calculations will differ (the tax booklet takes you through all this).
I don't buy royalty trusts anymore, since all this work at tax time is not worth it, I've decided. Good luck!
