PatriciaV
Expert Alumni

Get your taxes done using TurboTax

As long as you report all taxable income from Form 1099-MISC, you can use whatever income section(s) apply.

 

Most mineral bonuses are one-time income and are not related to a Rental Property. For this reason, you may enter this Form 1099-MISC under:

  1. Federal Taxes
  2. Wages & Income
  3. Other Common Income
  4. Income from Form 1099-MISC

When asked, check that this income was NOT related to a main job. Likewise, check that you received it only this year. Check that it didn't involve an intent to earn money.

This entry will result in your description and the amount in Box 3 appearing on Form 1040 Line 8 "Other Income." No depreciation will be calculated and no Schedule E will be created.

 

Although gas royalty properties are entered with Rental Properties, be sure you check the box for ROYALTY when you set up the property and enter only Box 2 from Form 1099-MISC. You can still report expenses like property taxes and production taxes. But other areas that don't apply to Royalty properties aren't needed. Also, TurboTax will automatically calculate depletion for you.

 

 

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