Enter the form as it is reported with the box 2 gross amount of $4,576. Then you will enter the taxes and other deductions as expenses, so that you pay tax on the net amount of $3,890. That's including the 15% depletion on the gross amount and less your other two expenses.
Enter the 1099-MISC form under the Rental
Properties and Royalties section.
- Select Federal Taxes
- Wages & Income
- Rental Properties and Royalties
After entering the
initial royalty information, enter the taxes paid on the page, Enter
Your Royalty Information. Mark the box if your form had the taxes
withheld on the 1099-MISC form (Boxes 4 or 16). Continue to next page to enter depletion (15% of gross), then select More
Expenses.
Continue until you reach the summary page
where you can enter the taxes (if not listed in box 4) and other deductions as a misc. expense.
See attachments.
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