I received two 1099-MISC forms from two different companies for gas & oil rights. However, they had the amounts in different blocks. One was in "1. Rents" and the other was in "3. Other Income".
I suspect the "other" 1099-MISC should have the amount reported in box 2, and not box 3. You need to contact the issuer and ask them what that amount in box 3 was paid to you for EXACTLY.
The box 1 amount is rental income that gets reported on SCH E. It's what they paid you to rent the land from you for extracting the gas/oil.
I would expect the other amount that "should" be in box 2, to be royalty income which would be reported to you in box 2. If it's reported in box 3, then it's self-employment income that gets reported on SCH C. For self-employment income that would mean that you provided the payer a product or service "on a recurring basis" for that money.
