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shepeg
New Member

I have 2 1099 Misc forms one is for the oil & gas lease - Box 1 rent. The other is for the royalties from the oil and gas lease - Box 2, where do I enter these?

The 1099 for the lease, or box 1 rent, is from the company that signed the lease with us.  The other 1099 for the box 2 royalties is from the company doing the drilling.  When I tried entering the 1099 for the rent, under the misc income section it was treating as a rental property. 

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Patrice
New Member

I have 2 1099 Misc forms one is for the oil & gas lease - Box 1 rent. The other is for the royalties from the oil and gas lease - Box 2, where do I enter these?

When you enter income from a K-1, rental property, or non-business royalty, TurboTax will automatically generate Schedule E.

Schedule E, Supplemental Income and Loss is used to report profits and losses from K-1s as well as income and expenses from rental property and certain types of royalty income.  

You generally report your oil and gas royalties on Part I of Schedule E, Form 1040. 

The IRS expects the royalty payment to be reported on the correct form. 

Specifics for reporting

Box 2 of Form 1099-MISC is reserved for tax reporting related to royalty payments.Part I of Schedule E (Form 1040)[select royalty for this]

Box 1 of Form 1099-MISC is reserved for tax reporting related to rental payments.Part I of Schedule E (Form 1040)[select rental for this]

Use a separate schedule for each type payment .

https://ttlc.intuit.com/replies/4792182

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