Investors & landlords

Yes, this is how to report this income and claim the expenses that are associated with this income. Before we begin this process, delete your 1099-MISC where you entered before. i just want to make sure we have a clean copy before proceeding. To delete, go to tax tools>tools>delete a form>1099-MISC.

1. Now open Turbo tax if it is not already opened
2. Go to federal>income and expenses>rental properties and royalties>Rental Properties and Royalties (Sch E)
3. What are you here to report? Royalty 
4. Then it will ask information where this royalty is located. You may have entered this already but if you haven't, this may be useful.
5. Then answer the next few questions when it asks more information about your royalty.
6. I know you asked earlier about a question that asked if you were a partial owner. Here you will say no if all of the income on the 1099-MISC is your income.
7. Once the profile is complete, it will ask about your income. Here is where the 1099-MISC information is entered. If this is the path you followed before, then forgive me for listing this. I just wish to make sure you do this 100% correctly.
8. Keep continuing in the return.  You are not done yet.
9. After an explanation on the difference between assets and expenses, you can begin listing your expenses regarding taxes or products.  Please note, if there was federal income tax withheld, there is a section in Box 4 of your 1099-MISC to enter that. Property taxes are entered as expenses.
10. As you scroll through expenses, taxes are at top of the list. All property taxes will be listed here.
11. As you scroll through remaining expenses, if there is a particular category not listed here, at the bottom of the form is miscellaneous expenses. You could list these here with a brief explanation.
12. I hope this helps.