Deductions & credits
You can enter under
- Rental Property and Royalties START or UPDATE
- Yes, Income from Rentals or Royalty Property you own
- Select YES to review if necessary otherwise "No" not real estate professional
- Select "Royalty property or payment"
- Type "Royalty rights, no land" as the description
- Use your address if needed
- Does all the income belong to you? YES
- What type? Mineral Property
- Enter the income reported on the 1099-MISC
(See the Note concerning additional boxes on your 1099-MISC)
If not needed, do not check the box and finish the interview
This will generate Schedule E and report the royalty income
The income will be on Schedule 1 line 5
If you enter as "Other Common Income" "Income on Form 1099-MISC and the income is in Box 1 RENTS, you will need to setup the rental for Schedule E.
If you decide you want to enter the first way, you need to delete all entries for this 1099-MISC you may have already entered and start at the beginning
