Where do I enter money from the sale (not lease) of mineral rights?

[eleanorroosevelt]

My mother-in-law sold inherited mineral rights.  This was not a lease.  I don't know where to enter this income for tax purposes.  Is it royalty, business income, or something else?

[IreneS · Accepted solution]

UPDATED FOR TAX YEAR 2019

You can enter the sale of mineral rights as the sale of an investment, using these steps:

1. Click on Federal > Wages & Income
2. In the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.  
3. If you have already entered some investment sales, you will see a screen Here's the investment sales info we have so far.  Click on the Add More Sales link.  
4. If you haven't yet entered some investment sales, you will see a screen Did you sell any investments in 2019?  Click the Yes box.
5. On the screen, Did or will you receive a 1099-B form, mark the No button and click Continue
6. On the screen, Now we’ll walk you through entering your sale details, select Everything Else from the list in the first box.
7. Fill in the rest of the boxes with the sale information.  Be sure to enter the NET proceeds. 
8. If taxes were withheld from the sale, click the box I have more info to enter that I don’t see here.  Enter the taxes in the boxes that appear.
9. Click Continue when done.  
10. Continue through the screens, entering the requested information.

[Edited | 4/13/2020 |  11:18 am PDT]

[SE-Deductable]

Where are the percentage depletion allowances that were deducted entered?