PatriciaV
Expert Alumni

Get your taxes done using TurboTax

Here's the problem: both Schedule E's are marked as Royalty. One needs to be a Rental. Also, there's a hidden schedule E that cannot be edited.

 

Your best option is to delete all Forms 1099-MISC related to Schedule E, then report the income in the Schedule E interview. Delete them from the 1099-MISC topic under Income.

 

After you delete the 1099's, go to Rental Properties and Royalties. Delete the Royalty Property and confirm the hidden Schedule E is on the forms list.

 

Review the Property Profile for the Rental property to be sure the Rental box is checked. Also report that it was rented all year at a fair rental price. Then work through the rental interview to report the rental income from Form 1099-MISC. Add another 1099-MISC if you have more than one with rental income.

 

Continue back to the Rental and Royalty Summary page and Add Another Rental or Royalty - in this case, the royalty property you deleted earlier. Be sure to check the Royalty property box. Also check the box for Oil and Gas Royalty Income.

 

The income page provides a box to enter the total royalty income you received from all sources (including 1099-MISC). Agree to the depletion calculation and continue back to the summary page.

 

These steps should resolve the rent/royalty issue on your return.

 

@Rocky1023 

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