DaveF1006
Expert Alumni

After you file

Here is the best way to enter your royalty property without a 1099 MISC.

 

  1. Login and continue your return.
  2. Select Federal>wages and income>
  3. Rental Properties and Royalties>Rental Properties and Royalties (Sch E)
  4. Answer the first question Yes.
  5. Continue until you reach the Rent and Royalty Summary
  6. Select add another Rental or Royalty at the bottom of the page.
  7. now when it asks is this a rental property or Royalty, select Royalty
  8. Now give it the best description possible including the address if you have it.
  9. Answer the next question yes or no
  10. Then answer what type of royalty income is it.
  11. Then it asks for your royalty information.  Put in the gross amount for royalty income
  12. For taxes paid, put in $64.90 leave the box regarding 1099 MISC blank
  13. Next box will report the depletion amount automatically. Then click on more expenses to add.
  14. Finish out the section until you reach a royal summary page.
  15. Scroll down to expenses.  Scroll through each screen until you get to a screen that says says any miscellaneous expenses. Record administrative expense and $12 as the amount.
  16. For the next few screens, just press done at the bottom. You have finished recording everything.
  17. Now you will have a properly recorded Schedule E for this new activity.
  18. Now this royalty information will not generate a separate Schedule E.  What it will do is report in one of your Schedule E's that you already generated.  in this case, it will appear in Column C. Iin my mock example when i worked through this, it appeared in Column C in Copy 2 but may report in Copy 1. 
  19. Just remember a Schedule E can report up to 3 rental or royalty properties in a single Schedule E.
  20. Now if you look at  column c, Gross income will appear in Box 4.  The administrative fee will appear in Box 19.  management fee. The tax is properly recorded in Box 16.

@blazman 

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