You can use a work around to put it on line 21 (other income ) of form 1040.
TurboTax (TT) will aggressively steers you to self employment, even if the amount is in box 3. But, you can force TT to treat it as other income.
At the screen "Does one of these uncommon situations apply", select "None of these apply". If you answer all 3 of the next questions no; TT treats it as other income rather than self employment.
• No, didn't involve work like main job
• Only got the income in 2016
• It didn't involve an intent to earn money
This will put it on line 21 of form 1040, correctly identified as “other income from box 3 of 1099-Misc”
Lying to TurboTax to get it to do what you want does not constitute lying to the IRS.
Next make a negative entry on line 21 by following choice #4 in the answer, below. For description say something like 1099-Misc patent income reported as capital gain per section 1235 of the Internal Revenue Code
