I have leased a portion of my farmland to a solar developer that has installed solar panels and storage. I receive income reported on 1099-Misc, Box 1 - Rents. In the past I have included that income on Schedule E, Rental Income. Other TurboTax articles claim that it should be reported as passive income on Schedule E, Royalties. Should the lease income reported on 1099-Misc Box-1 Rents be reported instead on Royalties 1099-Misc Box-2?
I also have expenses incurred from ground maintenance surrounding the project. Are these expenses also reported under the 'Royalties' Expenses tab?
Thx 🙂