Do we classify income we received for a lease on land that included drilling rights as rent? That's what they put on the 1099 Misc.???

[IsabellaG · Accepted solution]

Yes, you would report lease payments and lease bonus payments as rent. See the IRS Tips on Reporting Natural Resource Income.

• Enter your 1099-MISC for rents in the 1099-MISC section as it appears. 
• Check that it is for Rental income from the rental of real estate (Schedule E)
• Add Lease Bonus on the screen to select the rental or royalty that generated this income, and check that.
• Continue through the rest of the section.

[EDIT 02/18/18 11:32 AM]

[joycferg]

Thank you, IsabellaG!!

[IsabellaG]

You're welcome!