How to change property tagged as a royalty to a rental property?

[rcheva1]

A rental property I have owned for 20 years has somehow been identified as a royalty this year.  I think I mistakenly linked a gas lease 1099 to it.  I have moved the 1099 to the correct asset/property and changed the rental property profile to be a rental property but it keeps reverting back to being identified as a royalty asset, not a rental.  This is causing errors to trigger in my forms during the review.

How do I change the property profile back to a rental?  Or is this a bug?

[KrisD15]

Try deleting the 1099 for the gas lease.

Edit the rental so it is a rental. 

Close the program

Go back in and enter the 1099 for the gas lease and link it to the correct property. 

To delete in TurboTax desktop, switch to Forms.

To delete in TurboTax Online select "Pick up where you left off"

Tax Tools on the left side bar

Tools on the drop-down 

Delete a Form on the "Tools Center" screen 

[rcheva1]

TurboTax still wants to make the property a royalty property. 

The 1099 MISC don't show up under forms, they are on schedule E.  I went into view mode and deleted the 1099, changed the property type to rental, saved the file, and closed TurboTax.  I opened TurboTax, entered the 1099 and assigned it to the correct property.  I then looked at the rental and it still shows as a royalty.  Also, when looking at the schedule E associated with the rental it shows as not done.  The income is missing.  The expenses are there, but it isn't showing the income.  The summary in view mode doesn't show the income either.

[PatriciaV]

You may need to enter rental income after you change the property back to a rental to confirm the change. Also, the 1099 may be interfering with this process.

1. Delete Form 1099-MISC, wherever it is entered. 
   --- If you're using TurboTax for Desktop, you can delete the related worksheet in Forms mode.
2. Open the rental property & switch to rental property. 
   --- In Forms mode, open the Schedule E Worksheet and use the drop-down to change Property Type (anything other than 6 or Other). Then return to Step-by-Step.
3. Continue through the interview to report the number of days rented, etc., then enter rental income.
4. Continue back to the Property Summary page to save your work.
5. Save your file and close TurboTax.
6. Reopen your return and verify the property is still listed as a Rental.

Only after you are certain the correction has been made to the rental property can you re-enter Form 1099-MISC.

Note that you can't report both rental and royalty income for the same property. Be sure you have set up a new Royalty Property with a different description, although you can use the same address.

[rcheva1]

Sorry for the delay.

The  1099 has been deleted.

-- Opening the schedule E for the rental shows a property type of 1

-- Opening the schedule E for the royalty shows a property type of 6

-- Reviewing the schedule E depreciation report shows that the rental depreciation is listed on the royalty property.

I won't have time to work on re-entering information until tomorrow.  I took a quick break from work to check the forms. 

I think the first thing I should do is use forms mode to get the depreciation on the correct property and make any other adjustments necessary on the depreciation reports.  And maybe the schedule E if anything else seems off.

This is really weird.  I've had this property and the gas leases 20 years now and haven't had any issues, that I know of, until now.