I am a California resident and own some mineral rights in Oklahoma. Last year I received some royalties from a company that I had leased to prior. The lease expired and I signed a lease agreement with another company, so now I have rents and royalties from the same property. Both companies have sent me 1099-misc forms, and they show the correct "Royalties" or "Rents" on the forms. I have entered the 1099 information for both into Turbo Tax Premier edition, and after doing a review, TTax is telling me:
Since these are both from the same property, should I ignore this and continue, or do I need to change something?
Second question, since this is all for Oklahoma, is the money received for the lease taxable in OK? I have done a little reading and it seems like rents are for real property, and mineral rights are not real property. The 1099-misc for the royalties had $28 OK state taxes withheld, and TTax is telling me my state refund is $28. It is hard to imagine OK letting over $40K go un-noticed.
Thanks,
{Name removed}
