Where do I input the character of my royalty income, passive as opposed to non passive? It is appearing incorrectly on my return.

[Anonymous]

what is the source of the royalty income?

[kslbuch45-gmail-]

Oil and gas investment

[Anonymous]

are these from a royalty trust or thru a k-1.   in such case the royalties are portfolio income not passive. portfolio is entered on schedule E page 1.

The IRS considers royalties from oil and gas leases to be ordinary income even if the taxpayer doesn't participate in the business (thus nonpassive). Owners should get a Form 1099-MISC early in the year that details total royalties earned the year before. Royalty recipients are also entitled to take a deduction for the oil depleted during the year. Owners with a working interest in extraction operations can also deduct related business expenses such as legal, administrative, transportation costs.