topic I am trying to enter oil lease and royalties on Schedule E. It says I have an error on the worksheet E though the amounts are correct. How do I get this done accurately? in Investors & landlords

I am trying to enter oil lease and royalties on Schedule E. It says I have an error on the worksheet E though the amounts are correct. How do I get this done accurately?

mickman — Fri, 19 Mar 2021 00:00:13 GMT

I have three items, lease and two royalties but am unable to enter this on schedule E without error checks even though the data is correct.

Re: I am trying to enter oil lease and royalties on Schedule E. It says I have an error on the wo...

RayW7 — Fri, 19 Mar 2021 00:15:29 GMT

You can go to the forms mode and look at the schedule E. After you switch to the forms mode Schedule E will appear on the left side of the screen.

Look for any '! Red' marks and also look for any highlighted areas on the Schedule E. This may give you an indication on what needs to be corrected.

To switch to Forms Mode, open your return and click the Forms icon in the upper-right corner of your screen (or choose Forms from the View menu at top).

The 1040 Worksheet will display and all the forms in your return will be listed on the left side. Simply select a form to open it.

To switch back to the interview, click the Step-by-Step icon in the upper right corner, or choose it from the View menu.

Re: I am trying to enter oil lease and royalties on Schedule E. It says I have an error on the worksheet E though the amounts are correct. How do I get this done accurately?

Carl — Fri, 19 Mar 2021 00:34:55 GMT

We would most likely be able to offer a more useful response, if you told us what the errors are, in the order the errors are displayed to you.

When you have a mix of rental income and royalty income, one common error is entering both incomes as a single 1099-MISC entry. You have to enter each "AS IF" you received a 1099-MISC with the income reported in box 1, and then another physically separate entry of the same 1099-MISC, with only the amount entered in box 2.

Re: I am trying to enter oil lease and royalties on Schedule E. It says I have an error on the worksheet E though the amounts are correct. How do I get this done accurately?

20rrsStillH20 — Wed, 02 Mar 2022 22:46:24 GMT

I have the same issues - we have income and royalties on the same property.

I get 2 errors on Schedule E. One on line 3, if I enter 0.00 in the first box, the amount listed on the 1099-MISC is already entered. Exactly the same on Line 4 error. It will not accept a blank or zero on Line 3 or 4, and if I enter the amounts that are already listed under the 1099-MISC lines it duplicates the amounts, which is incorrect.

Example:

Say I got $1000.00 for rent (the property is already marked that we do not need to provide a 1099) line 3 is blank, but it shows up under line 3 1099-MISC as $1000.00.
Say I got 1500.00 on royalties (it is the same property; already marked that we do not need to provide a 1099) line 4 is blank, but it shows up under line 4 1099-MISC as $1500.00.

How do I get past the errors? I hope that's enough of an explanation to get an answer that will work for me.

Re: I am trying to enter oil lease and royalties on Schedule E. It says I have an error on the worksheet E though the amounts are correct. How do I get this done accurately?

Carl — Wed, 02 Mar 2022 23:39:37 GMT

When you have rental income in box 1 and royalty income in box 2 on the same 1099-MISC, then you must enter it "AS IF" you have two physically separate 1099-MISCs.

Enter the first 1099-MISC and report the rental income in box 1 only. Then finish working through the rental in it's entirety.

When done, click the "Add another rental or royalty" and this time make sure to change the default selection from rental income, to royalty income. Then enter a 2nd 1099-MISC using the amount in box 2 only, to report the royalty income.

When done correctly, the SCH E line 3-20 will show the rental income/expenses in column A and the royalty income/expenses in column B.

Re: I am trying to enter oil lease and royalties on Schedule E. It says I have an error on the worksheet E though the amounts are correct. How do I get this done accurately?

20rrsStillH20 — Wed, 02 Mar 2022 23:52:00 GMT

I apologize for the oversight. These are separate 1099-MISC forms from 2 different entities entirely, but on the same property.

Re: I am trying to enter oil lease and royalties on Schedule E. It says I have an error on the worksheet E though the amounts are correct. How do I get this done accurately?

Carl — Wed, 02 Mar 2022 23:59:31 GMT

I think you have to make the description different in the property profile for each. For example, call one 201 This Street (Rental) and the other 201 This Street (Royalty)

I know there's something in the profile section for each that has to be unique for each. Might even be the actual street address, but I'm not sure.