To create a second Schedule E for your royalty income, you will need to revisit the Rentals, Royalties, and Farm interview. To do this,
- In your open Federal return, choose the Wages & Income tab, Then scroll down to Rental Properties and Royalties (Sch E) and Edit/Add.
- On the next page Income from Rentals or Royalty Property You Own, say Yes.
- Answer the Real Estate Professional question and Continue.
- The next page is Rental and Royalty Summary. Click the blue link under the summary that says + Add Another Rental or Royalty.
- On the next page Is This a Rental Property or Royalty? choose the radio button for Royalty property or payment and continue through the interview.
Be sure to go back and remove the royalty information from the first Schedule E by choosing Edit on that property.
