We received a check to renew our lease for our gas and oil mineral rights. Does this go under royalty payments?

Forum|Forum|7 years ago
June 1, 2019
1 reply
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TurboTax Premier Online

Best answer by PatriciaV

No, not if this income was reported on Form 1099-MISC as "Rents" in Box 1. This amount is reported on Schedule E as Rental Income, not Royalties.

If you also have Royalty Income for the same property, you can't report both rental income and royalty income under the same property on Schedule E.

To resolve this, enter two separate properties (activities).

After you've completed the information for the rental activity (mark as "Rental"), add the royalty property. You can keep the same address, but enter a different property description and be sure to mark this as "Royalty". See screenshot below (click to enlarge).

PatriciaVAnswer

Level 15

No, not if this income was reported on Form 1099-MISC as "Rents" in Box 1. This amount is reported on Schedule E as Rental Income, not Royalties.

If you also have Royalty Income for the same property, you can't report both rental income and royalty income under the same property on Schedule E.

To resolve this, enter two separate properties (activities).

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