How do I document 1099-MISC form when money received for renting my property for mineral rights?

Your income likely qualifies as investment income on Schedule E.

 

In TurboTax Premium Online, follow these steps.

 

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click on Wages & income.
• Click to the right of Rentals, Royalties, and Farm.
• Click to the right of Rental Properties and Royalties.
• At the screen Your 2024 rentals and royalties summary, select Add another rental or royalty.
• At the screen What are you here to report, select Royalty.  Click Continue.
• Establish the royalty activity.
• Report the income at the screen Let's enter the income for royalty.
• Select Form 1099-MISC to report the royalty income.

The investment income derives from property that you own.  This includes natural resources extracted from your property by a third party who leases your property, as well as royalties from intellectual property that you didn't create yourself. 

 

Investment income includes amounts received from oil, gas or mineral properties when natural resources are extracted from your property.  These royalties are based on units, such as barrels, tons, etc. and are paid to you by a person or company that leases the property from you.  You may be eligible for a depletion allowance.