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I am trying to enter production taxes on mineral rights under royalties but there isn't any place to enter it. Where do I enter it?

 
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4 Replies
DianeW777
Expert Alumni

I am trying to enter production taxes on mineral rights under royalties but there isn't any place to enter it. Where do I enter it?

You are allowed to deduct any expenses directly related to this income. Select your Royalty income then select this expense.

  • This can be entered under 'Miscellaneous expenses'.  
  • It will show up under your expenses, click Start or Review 
  • Simply enter your description and the amount.  See the image below.

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I am trying to enter production taxes on mineral rights under royalties but there isn't any place to enter it. Where do I enter it?

I entered the productions taxes under Other Taxes.  However, even though I entered all information from the 1099-Misc forms for rents and royalties, when I ran a review I am now being told that rents and royalties cannot be on the same Schedule E.  Does this mean I need to make a separate Schedule E?  If so, how do I do that?

MarilynG1
Expert Alumni

I am trying to enter production taxes on mineral rights under royalties but there isn't any place to enter it. Where do I enter it?

Go back and check your 1099-Misc entry for Royalties.  You need to indicate that it is for 'Royalties'  with an amount in Box 2.  

 

Here's more info on How to Enter 1099-Misc for Royalty. 

 

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I am trying to enter production taxes on mineral rights under royalties but there isn't any place to enter it. Where do I enter it?

I have two 1099-Misc forms.  One form has rents only, and the other has rents and royalties.  When I followed the step-by-step procedure, I came up with three 1099-Misc worksheets.  All information from those three forms was transferred to Schedule E.  However, I am receiving an error message stating that rents and royalties must be separate.  What am I doing wrong?

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