topic 1099-MISC in Business & farm

1099-MISC

b14545506 — Wed, 05 Feb 2020 18:15:58 GMT

I received a 1099-Misc for oil well royalties on property my Mother owns. How do I report this as investment property if I don't own it?

Re: 1099-MISC

DavidD66 — Wed, 05 Feb 2020 21:07:41 GMT

The best way to resolve this would be to get the issuer of the 1099-MISC to correct it/reissue to your mother. Another option would be to treat it as nominee income, and issue your mother a Form 1099-MISC. Show the 100% of the 1099Misc for Royalties Income on your return (as IRS matches these documents. Then take a deduction under "Other: expenses, and list your mother's name and dollar amount.

Re: 1099-MISC

Carl — Sat, 08 Feb 2020 23:56:08 GMT

How do I report this as investment property if I don't own it?

For starters, if it's your mother's SSN on the 1099-MISC then "you" don't report it on your tax return. Your mother reports it on her own tax return.

next, for whoever that 1099-MISC is issued to (your mother I assume) they do not have any investment property. It's royalty income that's reported in box 2 of that 1099-MISC. When the program asks you for the address of the royalty property (which I think the wording of that question is very misleading) you enter the physical address of the property - weather the recipient actually owns the property or not.

They are reporting royalty income - not property income. Two totally different things as the recipient of royalty income is not required to actually own the property that produces that income.