topic I received a 1099 misc for a signing bonus for a mineral lease. how is it reported in Get your taxes done using TurboTax

I received a 1099 misc for a signing bonus for a mineral lease. how is it reported

gkirk00 — Thu, 06 Jun 2019 16:09:18 GMT

I leased mineral rights and received a 'bonus' payment when signing the lease. I also received royalties on the production. I received 2 1099 misc, one for the bonus, with the bonus amount shown in block 1 Rents.. For the royalties, the 1099 has the royalty amount properly in block 2. I am having a difficult time figuring out how to enter the 'rents' 1099 into TurboTax.

Lease bonus payments are considered rental income. See IR...

IsabellaG — Thu, 06 Jun 2019 16:09:19 GMT

Lease bonus payments are considered rental income. See IRS Tips on Reporting Natural Resource Income .

Enter your 1099-MISC for rents in the 1099-MISC section as it appears.
Check that it is for Rental income from the rental of real estate (Schedule E)
Add Lease Bonus on the screen to select the rental or royalty that generated this income, and check that.
Continue through the rest of the section.

Mineral Lease bonus payments are considered rental income. See IR...

RLM1 — Thu, 30 Jan 2020 21:27:58 GMT

Is this considered "for profit" property?

It asks questions relative to the number of days property is rented. Since this for a mineral lease, how should I respond to this question?

Thanks for your help.

Re: I received a 1099 misc for a signing bonus for a mineral lease. how is it reported

MinhT1 — Thu, 30 Jan 2020 21:38:28 GMT

The mineral lease is a for profit rental and the number of days rented should be 365 (if you have received the lease payment for the full year).

Re: I received a 1099 misc for a signing bonus for a mineral lease. how is it reported

RLM1 — Thu, 30 Jan 2020 22:01:38 GMT

It was a one-time signing bonus covering a multiple year lease that was received in November of 2019. There is no other payment being made.

Re: I received a 1099 misc for a signing bonus for a mineral lease. how is it reported

MinhT1 — Thu, 30 Jan 2020 22:08:15 GMT

@RLM1

Then for days rented, count the days from receipt of the payment until the end of the year.