Generally a Royalty Trust goes on Schedule E, with income, admin exp, severance tax, depletion expense.
Use the information guidance provided by the Royalty Trust (usually available online from the Royalty Trust).
Box 2 of Form 1099-MISC is reserved for tax reporting related to royalty payments.Part I of Schedule E (Form 1040){select royalty for this] Link to "investment"at the last screen of the 1099-misc section..
SAN JUAN BASIN ROYALTY TRUST
(e)Individual Taxpayers. For Unit holders who hold the Units as an investment and who file Form 1040 for 2016, it is suggested that the items of income and deduction computed from the appropriate schedules be reported in the following manner:
Gross Royalty Income
Line 4, Part I, Schedule E
Depletion
Line 18, Part I, Schedule E
Severance Tax
Line 16, Part I, Schedule E
Administration Expense
Line 19, Part I, Schedule E
Interest Income
Line 1, Part I, Schedule B
