It gets reported on SCH E. Pay attention when working through the Rental & Royalty Income section of the program. By default, "RENTAL" is selected. Make sure you change it by selecting the option to identify the income as ROYALTY income.
You will be asked for an address of the property. The fact you don't own the property is irrelevant. Just enter the address if the property has an address. If it doesn't have an address, then there's nothing wrong with using the address of the check issuer.
