https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/own-land-that-is-rented-to-an-operating-company-that-pays-royalties-for-the-oil-they-extract-is-this/01/2167725#M70206 Sat, 03 Apr 2021 22:59:13 GMT K10brooks 2021-04-03T22:59:13Z https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/own-land-that-is-rented-to-an-operating-company-that-pays-royalties-for-the-oil-they-extract-is-this/01/2167725#M70206 Sat, 03 Apr 2021 22:59:13 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/own-land-that-is-rented-to-an-operating-company-that-pays-royalties-for-the-oil-they-extract-is-this/01/2167725#M70206 K10brooks 2021-04-03T22:59:13Z https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-own-land-that-is-rented-to-an-operating-company-that-pays-royalties-for-the-oil-they-extract/01/2167774#M70209 <P>Royalties.&nbsp;</P> <P>The income will be reported on Schedule E.&nbsp;</P> Sat, 03 Apr 2021 23:21:16 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-own-land-that-is-rented-to-an-operating-company-that-pays-royalties-for-the-oil-they-extract/01/2167774#M70209 KrisD15 2021-04-03T23:21:16Z https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-own-land-that-is-rented-to-an-operating-company-that-pays-royalties-for-the-oil-they-extract-is/01/2167883#M70213 <P><EM><STRONG><SPAN class="lia-link-navigation lia-link-disabled">Own land that is rented </SPAN><SPAN class="lia-link-navigation lia-link-disabled">to an operating company that pays royalties</SPAN></STRONG></EM></P> <P><SPAN class="lia-link-navigation lia-link-disabled">You have both rental income, which is what the company pays you for the land, and royalty income the company pays you for the oil they extract from that land.</SPAN></P> <P><SPAN class="lia-link-navigation lia-link-disabled">The rental income is whatever amount they are contracted to pay you under a rental agreement for their use of the land. The rest is royalty income.</SPAN></P> <P><SPAN class="lia-link-navigation lia-link-disabled">You will have two entires in the SCH E section of the program. One will be for the rent they pay for the land.If you do not also rent them any structures you own on that land, then nothing gets depreciated. <BR /></SPAN></P> <P><SPAN class="lia-link-navigation lia-link-disabled">The other will be for the royalty they pay you. With the royalty payment you will get to claim depletion each year (as opposed to claiming depreciation for a physical structure you own and rent out.) </SPAN></P> <P><SPAN class="lia-link-navigation lia-link-disabled">If the income is reported to you on a 1099-MISC with amounts in box 1 and box 2, then you will enter it "AS" "IF" you have two physically separate 1099-MISCs. One has income reported in box 1, and the other has income reported in box 2.</SPAN></P> <P>&nbsp;</P> <P>&nbsp;</P> Sun, 04 Apr 2021 00:01:04 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-own-land-that-is-rented-to-an-operating-company-that-pays-royalties-for-the-oil-they-extract-is/01/2167883#M70213 Carl 2021-04-04T00:01:04Z