topic Do we classify income we received for a lease on land that included drilling rights as rent? That's what they put on the 1099 Misc.??? in Investors & landlords

Do we classify income we received for a lease on land that included drilling rights as rent? That's what they put on the 1099 Misc.???

joycferg — Thu, 06 Jun 2019 09:58:30 GMT

IsabellaG — Thu, 06 Jun 2019 09:58:31 GMT

Yes, you would report lease payments and lease bonus payments as rent. See the 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.

[EDIT 02/18/18 11:32 AM]

joycferg — Thu, 06 Jun 2019 09:58:33 GMT

Thank you, IsabellaG!!

IsabellaG — Thu, 06 Jun 2019 09:58:34 GMT

You're welcome!