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gmorpheus
Returning Member

How do I report K-1 for a stock with royalties?

I have shares of a stock called Sandridge Permian Trust (PER).  It is a "statutory trust, which engages in acquiring and holding royalty interests in specified oil and natural gas properties."  Every year I get  K-1 from this company which is confusing to report on my taxes.    The K-1 has entries under Interest Income (box 5),  Royalties (7), Deductions - Royalty Income, Deductions - Other (box 13), Tax-exempt interest income (box 19), Investment Income, Investment expenses, and Interest expense for corporate partners (box 20).  The stock is a PTP.  I am a Domestic Partner, and a Limited Partner or other LLC member.  How do I report these values for my 2020 tax return and which extra forms will I need to file?

3 Replies
Anonymous
Not applicable

How do I report K-1 for a stock with royalties?

the partnership  k-1 means that you would need a version of TT that allows filling out the TT k-1 for a partnership

you enter the numbers and check the boxes in the TT k-1 just as they are on the k-1,  there may be additional info in box 20 which may need to be entered elsewhere.    we can't see the K-1, so once you get the 2019 k-1 and you have questions, start a new thread with the questions you have 

online premier or higher.  for desktop deluxe.  

 

if would seem from your thread that you have not been using  TT K-1 partnership form in prior years to report the activity.   many of the items on that k-1 would flow to other forms and schedules.  if you enter the amounts directly and correctly on those forms and schedules, no harm done. 

 

for example royalty income and expenses would flow to schedule E page 1.  interest income would be flow to schedule B  

Carl
Level 15

How do I report K-1 for a stock with royalties?

You really can't do anything until you actually have the 2019 K-1. Most likely you will have to enter things "as if" you received a separate K-1 for each type of income. For example, rental & Royalty income is passive. So you would enter the K-1 "as if" it only box 7 had an amount in it. Whereas interest income is "unearned" income. So you would enter another K-1 into the program "as if" only box 5 had an amount in it.

This is just examples. it really is simple. But no since in tackling this until you have the actual 2019 K-1 physically in your hand. That won't happen until the last week of January 2020 at the earliest, most likely.

Critter
Level 15

How do I report K-1 for a stock with royalties?

FYI ... a K-1 form is what is called a consolidated reporting form. So the PTP gets to send out one form instead of many individual forms which cuts down on paperwork. So when you enter the K1 form into the program (as written) the program in the correct K1 section it will automatically divide the information and populate all the correct forms using the information on the K-1. If you are trying to do this manually you will need to refer to the instructions for the K1 so you can put the correct info on the correct forms.
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