Unfortunately, you can't report both rental income and royalty income under the same property on Schedule E (this is a TurboTax program limitation).
To resolve this, enter two separate properties (activities) under Rental Properties & Royalties.
From to the list of Rental/Royalty Properties, review the entries for the Royalty Property that received royalty income on Form 1099-MISC. Be sure you checked the box for "Royalty" in the Property Profile section.
After you've completed this review, add a new rental property. You can keep the same address but enter a different property description and be sure to mark this as "Rental". Enter the income reported as "Rents" on Form 1099-MISC.
You can report your expenses under the Rental Property, as well as any other rental income.
With regards to the property address, the IRS instructions for a royalty property say address lines 1 and 2 should be left blank, but sometimes the program won't let you continue without an address. Your address entries are preserved on the individual Schedule E Worksheets that are part of your complete return (not an IRS form).
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