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Since I receive oil and gas royalty payments, are they considered Qualified Business Income? I have no role in the operation of the companies providing the payments.

 
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DianeW777
Expert Alumni

Since I receive oil and gas royalty payments, are they considered Qualified Business Income? I have no role in the operation of the companies providing the payments.

No. If you were involved in the operations of extracting the oil and gas minerals then it would be considered qualified business income (QBI). If you invested in a partnership or S corporation you may have pass-through entity QBI.  If so, it would be included on a supplemental statement attached to the K-1.

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