Part of the tax increase is due to the fact that a royalty qualifies for a 15% depletion deduction, whereas the lease income does not.
Check to see that the rental income is reported on Schedule E and not Schedule C. Income reported on Schedule C would be subject to both income taxes and self-employment taxes.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
