This is from 99 year lease my grandfather did for mineral rights. The property does belong to anyone in family.
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Royalty income is either Investment Income or Self-employed income. Your family owns the property so you would answer that it is income from investment property (Per IRS). You have an equitable interest in the property since you are receiving a 1099-MISC form for Royalty Income.
To enter royalty income so it is not self-employed income, follow these instructions:
1. With your return open in TurboTax, type royalty income in the search bar and click search.
2. Click on Jump to royalty income.
3. On the Income from Rentals or Royalty Property You Own, answer Yes
4. On the next screen, check None of the above.
5. On the Is This a Rental Property or Royalty? screen, check Royalty property or payment. Enter the information.
6. On the next screen, answer Yes.
7. On the What Type of Royalty Income? screen, click on Other Intangible (Patents, copyrights) or other applicable category.
8. Continue answering the onscreen interview until complete.
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