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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?
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.
@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?
Yes. Have selected correct responses.
Then the income and expenses would be for the Royalty property, not for a rental. What type of Royalty Income did you select?
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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