Royalty income of this type can safely be reported on Schedule E Rental & Royalty Income. To enter your Royalty income,
- Choose
the Federal return in the left bar, then select the tab
for Wages & Income
- Scroll down to Rentals,
Royalties, and Farm and Show more
-
Start/Revisit Rental Properties and Royalties (Sch E)
- Say Yes to Income from Rentals or Royalty Property You Own
- Select the appropriate
answer to So far You're not a Real Estate Professional and Continue
- On the next page, Edit your Royalty or Add
Another Rental or Royalty
- On the Property
Profile page, Is This a
Rental Property or Royalty?, select the radio button for Royalty
property or payment and
complete the interview.
My condolences on your loss.
Yes
No
