I think I have answered my own questions. I started over the return and did not select real estate rental, reporting everything in the Royalty section, with lease signing bonus reported as "Other," to assure ordinary income treatment and exclude it from royalties for depletion allowance calculation purposes. The income and expense items now appear to be flowing through to Schedule K, rather than being treated as a "trade or business" on pages 1 and 2 of the 1065 (except for the signing bonus).
