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lowrituh
New Member

Why are royalties for book being treated like rental property? All selections and entries are correct. I even deleted and re-entered.

 
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6 Replies
MindyB
Expert Alumni

Why are royalties for book being treated like rental property? All selections and entries are correct. I even deleted and re-entered.

Book royalties belong on Schedule E if you did not have a business writing books. 

 

There are two options for reporting book royalties, and depending on which option you choose, the income will be reported on a different schedule on your tax return.  The first option, "natural resource or intellectual property" will flow to Schedule E, while the second option, "being self-employed as a writer, inventor, artist" will flow to Schedule C.

 

Here are the instructions for reporting  How do I enter a 1099-MISC for royalty income?

lowrituh
New Member

Why are royalties for book being treated like rental property? All selections and entries are correct. I even deleted and re-entered.

Understood and thank you, but on schedule E it is asking for the rental property address and description and has the percent of the income in the rental property section instead of below in the royalty section. Seems like a technical glitch. 

Why are royalties for book being treated like rental property? All selections and entries are correct. I even deleted and re-entered.

@lowrituh When you first start the Rental and Royalty section of the program one of the first screens asks you to select whether this is a rental or royalty property.  Did you select Royalty?

Royalty property.JPG

 

lowrituh
New Member

Why are royalties for book being treated like rental property? All selections and entries are correct. I even deleted and re-entered.

Yes. Have selected correct responses. 

Why are royalties for book being treated like rental property? All selections and entries are correct. I even deleted and re-entered.

Then the income and expenses would be for the Royalty property, not for a rental.  What type of Royalty Income did you select?

lowrituh
New Member

Why are royalties for book being treated like rental property? All selections and entries are correct. I even deleted and re-entered.

Here's what I just did. I saved a new copy of the return, deleted the 1098-MISC and the Rental Properties and Royalties (I had not done that second step last time). I re-entered both from scratch again and it is correct. BTW I compared answers on each copy and they matched. So not sure what caused the hiccup but it is resolved.

I appreciate the responses. It at least confirmed I was doing it right.

I work in IT so I am familiar with this kind of thing happening. But it helped having the input. 

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