Hello,
When importing my tax information using Turbo Tax from my broker, I received a 1099-MISC for Permian Basin Royalty Trust that is an investment in my portfolio. Turbo Tax is placing the 1099-MISC in the Rental Properties and Royalty category and not with the Interest and Dividends category. I understand why that my happen since the amount is listed in box 2 (which is labeled Royalties) of the 1099-MISC .
This generates a Schedule E form for reporting the income. This also generates a question about depletion percent and about the company being a qualified or not qualified company which seems to apply only to owners or employees.
I am uncertain if this is the correct category since I am not really an owner of the property, the rights or the company. I just receive dividends (or as it is labeled, royalties from the company) through my portfolio.
Thanks
