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brownla24
New Member

I receive an oil royalty reported on a 1099-misc form and am trying to determine if I qualify for the 20% QBI deduction. The amount is reported in box 2.

 
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1 Reply
Coleen3
Intuit Alumni

I receive an oil royalty reported on a 1099-misc form and am trying to determine if I qualify for the 20% QBI deduction. The amount is reported in box 2.

A royalty such as this is passive income. You were not perssonally involved in the extraction.

Although the TCJA doesn’t list it as excluded investment-type income, it’s reasonable to conclude that mineral royalty income is excluded from section 199A, given its classification as investment-type income in other parts of the code.

https://www.taxnotes.com/tax-reform/news-analysis-tcjas-effects-oil-and-gas-investments

See also this answer.

https://ttlc.intuit.com/replies/7261489

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