I have 2 main questions about how to report royalty distribution income from stock ownership in royalty trust companies. My wife and I received royalties from our stock ownership in two royalty trust companies. The combined total of royalties from both companies was reported as one entry on line 2 of a 1099-MISC we received from our brokerage. Is this a mistake by our brokerage?
Asking because when I go through the interview, TT asks for the name and address of the company, which doesn't work for this situation. (Also, I cannot find addresses for these companies on their websites; they only provide a trustee name and contact info).
2nd question: TT is entering this on a schedule E in the business section. I was expecting this to be in the personal section since it is just passive income from stock ownership. Is it correct to be in the business section?
Note: in case this matters, my wife has a consulting side business but I do not have a business and the stock ownership is joint.
3rd question: "Severance taxes" and "Administrative transaction fees" were deducted from our royalty distributions. The net distributions were reinvested in additional stock. Can we report both of these as expenses on Sch E, or are they not deductible, or should they possibly be entered as additional basis for the stock we purchased?
I would appreciate any clarification / instruction you can provide for reporting this correctly.
