Where do I enter my 1099-Misc Royalty income from gas and oil revenue? I do not own the property only the mineral rights...(actually only a portion) the only options I am given are: It says I have to choose:Investment income from property you own – This includes natural resources extracted from your property by a third party who leases your property, as well as royalties from intellectual property that you didn't create yourself. This gets reported on Schedule E.Royalty income from a business you own. Artist royalties or operating a natural resource company. I DO NOT operate a natural resources company... and I don't own physical land. So which choice do I make? Thanks in advance for answers and clarity!

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Royalty Income

Forum|Forum|5 years ago
March 8, 2021
3 replies
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Where do I enter my 1099-Misc Royalty income from gas and oil revenue? I do not own the property only the mineral rights...(actually only a portion) the only options I am given are: It says I have to choose:

Investment income from property you own – This includes natural resources extracted from your property by a third party who leases your property, as well as royalties from intellectual property that you didn't create yourself. This gets reported on Schedule E.
Royalty income from a business you own. Artist royalties or operating a natural resource company.

I DO NOT operate a natural resources company... and I don't own physical land. So which choice do I make?

Thanks in advance for answers and clarity!

TurboTax Home & Biz Windows

Best answer by LenaH

You enter your 1099-MISC from oil and gas lease income in Box 2. On the next screen, choose Investment income from property you own as the source of your 1099-MISC. Although you do not own the property, this income still has to be reported on a Schedule E. Choosing the latter (royalty income from a business you own), would flow to a Schedule C on your return.

TurboTax will then create a Schedule E on your tax return. Once you enter the address of where you own the mineral rights, you will select Oil and Gas Income and be able to enter any expenses relevant to this income.

Please follow the steps below to correctly report your royalty income:

Open your return.
Search 1099-MISC and select the Jump-to link.
Enter your royalties in Box 2.
Select Investment income from Property you own for the page titled Source of 1099-MISC Income.
Search for Schedule E and select the Jump-to link.
Click Edit next to the Royalty entry.
Answer the remaining on-screen questions.

LenaH

Answer

Community Manager

Please follow the steps below to correctly report your royalty income:

Open your return.
Search 1099-MISC and select the Jump-to link.
Enter your royalties in Box 2.
Select Investment income from Property you own for the page titled Source of 1099-MISC Income.
Search for Schedule E and select the Jump-to link.
Click Edit next to the Royalty entry.
Answer the remaining on-screen questions.

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CaddyGrnAuthor

Level 5

Thank you so much!

merlenewton

Level 2

I have oil income and received a 1099 misc form with my royalties and oil production taxes on it. If I enter under the 1099 misc I don't have to add it again under rental properties and royalties do I? It would seem that I'm adding the income twice

MayaD

Alumni - Intuit

Yes, you don't enter the form twice.

How do I enter a 1099-MISC for royalty income?

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99E

Level 2

The amount of the royalty received for mineral rights only, was reduced by turbo tax by more than the depreciation even though I did not have any expenses or losses the prior year .It wouldn't let me correct it