topic I received royalty payments from mineral rights I inherited on property that I do not own. There is a "other deductions" amount listed at the top of the form 1099-misc in Investors & landlords

I received royalty payments from mineral rights I inherited on property that I do not own. There is a "other deductions" amount listed at the top of the form 1099-misc

clr11251941 — Thu, 06 Jun 2019 05:22:21 GMT

I do not know where to put the amount that is at the top of my 1099-misc form as "other deductions" the amount is 1,001.39. I also don't know if I am reporting the royalty income correctly on the turbo tax forms, since I don't own the property

Yes, Royalty Income and Deductions are reported on Schedu...

PatriciaV — Thu, 06 Jun 2019 05:22:23 GMT

Yes, Royalty Income and Deductions are reported on Schedule E (Rental Properties & Royalties), even if you do not own the property.

To easily find this area of TurboTax, use the Search box at the top right corner of the TurboTax header and enter "royalties". Click on the "jump to royalties" link to be taken directly to this area of the program.

Follow the interview process to enter your Royalty Property, along with income reported on Form 1099-MISC and any property taxes you paid. "Other deductions" reported on Form 1099-MISC (example: production taxes), are entered under "More Expenses" in the extended interview. See the screenshot below for an example of a 1099-MISC entry for gas royalties.

If TurboTax prompts you to enter an address for the property, use the actual address if you know it (look on the property tax bill if you have one). Or use your own address. The IRS instructions say address lines 1 and 2 should be left blank, but sometimes the program won't let you continue without an address.

Re: Yes, Royalty Income and Deductions are reported on Schedu...

gks521 — Mon, 15 Feb 2021 18:04:57 GMT

I don't understand the question about 100% or partial ownership if I don't own the land. Is it asking if I own the mineral rights? I inherited the rights along with other heirs.

Also, TurboTax automatically gave the depletion allowance and I can't delete it. Is that correct even though I don't own the land?