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How do I report oil lease rental income without a 1099-Misc?

I have oil lease rental income, but did not receive a 1099-Misc because it is below the $600 reporting requirement?  Must I also prepare one Sched. E for the rental income, plus a separate Sched. E for the royalty received even though it is the same property?  The rental income was paid by a different company than the royalties also.

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Expert Alumni

How do I report oil lease rental income without a 1099-Misc?

Yes, even though you did not receive Form 1099-MISC, you should report this income on Schedule E, Rental & Royalty Properties.

Unfortunately, you can't report both rental income and royalty income under the same property on Schedule E. This is true even if the rent and royalties were paid by different sources.

To resolve this, enter two separate properties (activities) under Rental Properties & Royalties.

To find this section in TurboTax, open your return and use the Search box at the top right side of the TurboTax header. Enter "schedule e", hit Enter, then click on "jump to schedule e".

Continue to the list of Rental/Royalty Properties.

Review the entries for the Royalty Property that received royalty income. Be sure you checked the box for "Royalty" in the Property Profile section. Enter any related royalty expenses (like production and property taxes) for this property.

After you've completed this review, add a new rental property. You can keep the same address, but enter a different property description and be sure to mark this as "Rental". See screenshot below (click to enlarge). Report rental income and related expenses for this property.

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