In TurboTax Business, you will need to set up the Royalty activity first under Business Info >> About Your Business. Be sure to check the box for "We rent real estate to others" as one of your business activities. Continue through the interview to the page "Rental Real Estate Property Summary."
Add a property (or continue). On the Property Type and Location page, use your business address for the activity and choose "6 Royalties."
Then under Federal Taxes, go to Rental Real Estate and edit that activity. (Be aware that calling this a "Rental Real Estate" activity is a TurboTax convention and won't affect how it is reported to the IRS.)
Use your business address for the activity. Do not enter anything for the "number of days rented."
Enter your income from Form 1099-MISC under "Real Estate Income" and your related expenses under the provided expense categories.
To check that this is reported properly, click the Forms icon in the TurboTax header. Look for "8825 Worksheet" in the left column and click the form name to open it in the large window. Review the information and confirm no boxes are highlighted in red.
Click Step-by-Step in the header to return to the main screens.
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