topic Royalty Income in Get your taxes done using TurboTax

Royalty Income

CaddyGrn — Mon, 08 Mar 2021 19:35:33 GMT

Where do I enter my 1099-Misc Royalty income from gas and oil revenue? I do not own the property only the mineral rights...(actually only a portion) the only options I am given are: It says I have to choose:

Investment income from property you own – This includes natural resources extracted from your property by a third party who leases your property, as well as royalties from intellectual property that you didn't create yourself. This gets reported on Schedule E.
Royalty income from a business you own. Artist royalties or operating a natural resource company.

I DO NOT operate a natural resources company... and I don't own physical land. So which choice do I make?

Thanks in advance for answers and clarity!

Re: Royalty Income

LenaH — Tue, 09 Mar 2021 21:35:05 GMT

You enter your 1099-MISC from oil and gas lease income in Box 2. On the next screen, choose Investment income from property you own as the source of your 1099-MISC. Although you do not own the property, this income still has to be reported on a Schedule E. Choosing the latter (royalty income from a business you own), would flow to a Schedule C on your return.

TurboTax will then create a Schedule E on your tax return. Once you enter the address of where you own the mineral rights, you will select Oil and Gas Income and be able to enter any expenses relevant to this income.

Please follow the steps below to correctly report your royalty income:

Open your return.
Search 1099-MISC and select the Jump-to link.
Enter your royalties in Box 2.
Select Investment income from Property you own for the page titled Source of 1099-MISC Income.
Search for Schedule E and select the Jump-to link.
Click Edit next to the Royalty entry.
Answer the remaining on-screen questions.

Re: Royalty Income

CaddyGrn — Wed, 10 Mar 2021 02:14:01 GMT

Thank you so much!

Re: Royalty Income

oam202 — Sat, 20 Aug 2022 22:21:51 GMT

How would this work for patent royalties? If there is no 1099 what is the reporting threshold?

Re: Royalty Income

Mike9241 — Sat, 20 Aug 2022 22:45:16 GMT

Royalties from copyrights, patents, and oil, gas, and mineral properties are taxable as ordinary income. You generally report royalties in Part I of Schedule E (Form 1040), Supplemental Income and Loss. However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc., report your income and expenses on Schedule C (Form 1040).

yes $1 or more

Re: Royalty Income

merlenewton — Mon, 30 Jan 2023 17:26:47 GMT

I have oil income and received a 1099 misc form with my royalties and oil production taxes on it. If I enter under the 1099 misc I don't have to add it again under rental properties and royalties do I? It would seem that I'm adding the income twice

Re: Royalty Income

MayaD — Mon, 30 Jan 2023 17:52:23 GMT

Yes, you don't enter the form twice.

How do I enter a 1099-MISC for royalty income?

Re: Royalty Income

99E — Sat, 25 Feb 2023 17:36:18 GMT

The amount of the royalty received for mineral rights only, was reduced by turbo tax by more than the depreciation even though I did not have any expenses or losses the prior year .It wouldn't let me correct it

Re: Royalty Income

MaryK4 — Sat, 25 Feb 2023 22:01:07 GMT

TurboTax applies the depletion allowance of 15%. If you want to adjust it, you will have the find the Schedule E entry and

Edit/Add (see below). @99E

Re: Royalty Income 1099-MIS. Do not have business so I do I answers questions related to entering deductions and production taxes on 1099-MIS. requested business

GregZeimetz — Thu, 09 Mar 2023 22:01:59 GMT

Read Reply below. Very helpful. Received Royalty income on 1099MIS, do not own or rent property. After following instruction in Reply below I go to Schedule E and select "EDIT" .

How do I answer questions regarding a business name when I do not have a business related to Royalty income, when attempting to enter production taxes and deductions identified on 1099-MIS.

Please, Please, Please provide through instruction as found in Reply below for me to complete entering all steps necessary to complete this process.

Thank You

Re: Royalty Income 1099-MIS. Do not have business so I do I answers questions related to entering...

AmyC — Thu, 09 Mar 2023 23:57:33 GMT

I am going to assume that you went into the schedule E, got frustrated and left. Follow these steps:

Open your return
Go to the rental section
continue to the summary
select Property Profile
Select Royalty property or payment
Enter description - keep it simple
Location - select U.S. or Foreign
Enter Royalty address and owner
continue
All income on return? probably a yes as this is most common
What type of Royalty Income? select your type
Enter income from 1099-Misc
Check the box if there was no tax withheld on your form, which is the most common.
Depletion allowance is calculated for you
select Finished

@GregZeimetz

Re: Royalty Income 1099-MIS. Do not have business so I do I answers questions related to entering...

99E — Fri, 10 Mar 2023 00:08:58 GMT

Thank you