Unfortunately, a negative amount for 1099-MISC box 3 does NOT have any effect and therefore would not do the trick. Only a positive amount will be taken further to inquire that it was royalties or not (on next screen) and then make it over into Sch E. So the negative amount doesn't work. The potential of entering something negative into Sch E itself (e.g. as expenses, etc) is not allowed by TurboTax (only positive amounts can be entered). Negative amount only works as "Other reportable income" under the bottom-most item in TurboTax ("Less Common Income >Miscellaneous Income 1099-A, 1099-C >Other reportable income". And there an equal but negative amount does not fully offset the entry in 1099-MISC box 3 (it would if the entry were in Box 1 [rent] or if the entry were a 1099-DIV altogether). Strange.
