Solved
I JUST PAID TO SEE OUR TAX RETURN. WE ARE NOT IN BUSINESS WITH ROYALTY COMPANIES!
WE GET ROYALTIES FROM OWNING ROYALTY INTEREST IN LAND WHERE OIL AND GAS ARE BEING EXTRACTED
You generally report royalties in Part I of Schedule E (Form 1040). Oil, gas, and minerals. Royalty income from oil, gas, and mineral properties is the amount you receive when natural resources are extracted from your property.
Box 2 of Form 1099-MISC is reserved for tax reporting related to royalty payments.Part I of Schedule E (Form 1040){select royalty for this] Link to "investment"at the last screen of the 1099-misc section..
Box 1 of Form 1099-MISC is reserved for tax reporting related to rental payments.Part I of Schedule E (Form 1040)[select rental for this] "select "Non business income from the rental of personal property or equipment.
Use a separate schedule for each type payment by selecting the correct link.
