Since you
are not currently in business and you are only receiving a royalty, then
it will be reported in the Rental
Properties and Royalties section of TurboTax. Use the following steps to go directly to
that section of your return:
-
On the top row of the
TurboTax online screen, click on Search (or for CD/downloaded TurboTax
locate the search box in the upper right corner)
-
This opens a box where you
can type in “royalties” (be sure to enter exactly as shown here) and
click the magnifying glass (or for CD/downloaded TurboTax, click Find)
-
The search results will
give you an option to “Jump to royalties”
-
Click on the blue “Jump
to royalties” link
Skip the first question or so because they will pertain to rental
properties and not royalties. You will
come to a screen titled, “Is This a
Rental Property or Royalty?” where you can choose Royalty. You will need to
enter a short description for the type of royalty and include an address for
the royalty. Use your own address if the royalty is not associated with an actual
property address (such as with a property lease or mineral rights). Continue moving forward until you get to a
summary page for the royalty. Here you
can select Start or Update beside Royalty Income to enter the income amount.
