KrisD15
Expert Alumni

Deductions & credits

No, the law hasn't changed. Mortgage Interest and Property taxes are NOT legal deductions for gas royalties. 

 

You cannot claim Home Mortgage Interest or Property Taxes on Royalties. 

(Additionally you cannot "double dip" the same amount as both expenses and as deductions.)

 

The program may assume that you are entering legitimate expenses for the Royalty Income. 

 

There is the availability of having the program make an allocation, but that would only be for a rental since it would be based on square foot and time used as a rental. This is not possible for royalties. 

 

Make sure you have indicated "Royalty" on your Schedule E in TurboTax and not "Rental". 

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