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Income on Form 1099-MISC for both mineral lease rent and mineral rights royalties are reported on Schedule E. Unfortunately, you can't report both rental income and royalty income under the same property on Schedule E. To resolve this, enter two separate properties (activities).
After you've completed the information for the rental activity (mark as "Rental"), enter any lease/rent related expenses, then add the royalty property. You can keep the same address, but enter a different property description and be sure to mark this as "Royalty".
Follow the interview process to enter your Royalty Property, along with any income reported on Form 1099-MISC and the property taxes you paid. Note that if your 1099-MISC includes "other deductions" (example: production taxes), enter these under "More Expenses" in the extended interview. You can also enter things like production taxes, mineral property taxes, production costs, depletion, etc. after you enter the income.
Income on Form 1099-MISC for both mineral lease rent and mineral rights royalties are reported on Schedule E. Unfortunately, you can't report both rental income and royalty income under the same property on Schedule E. To resolve this, enter two separate properties (activities).
After you've completed the information for the rental activity (mark as "Rental"), enter any lease/rent related expenses, then add the royalty property. You can keep the same address, but enter a different property description and be sure to mark this as "Royalty".
Follow the interview process to enter your Royalty Property, along with any income reported on Form 1099-MISC and the property taxes you paid. Note that if your 1099-MISC includes "other deductions" (example: production taxes), enter these under "More Expenses" in the extended interview. You can also enter things like production taxes, mineral property taxes, production costs, depletion, etc. after you enter the income.
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