issues with 1099-MISC transferring from Schedule E to Schedule 1

[flossy21]

I believe I have found a glitch.  My wife and I are retired so no W2 income and we are MFJ with both of us being in our 50's.  We have some dividends and interest which were reported to us on 1099B and 1099INT.  We also have a 1099MISC for a rental payment on some mineral rights my wife owns.  To be clear this is a rental payment, not a royalty payment.  I enter the 1099B and 1099INT into Turbotax and everything looks good.  I also enter the 1099MISC for the rental payment under the section in Wages and Income that says, "Income and Expenses from rentals, patents, oil/mineral rights."  Once I enter all the info and click "Done" nothing changes on the taxes owed for fed or state and the line item shows 0 on the main page. 

If I punch out to the Forms there is an exclamation mark next to Schedule E but the amounts of the rental are on there.  If I check Schedule 1, line 5 on the 1040 there is nothing there.  We are not a business and this is not QBI.  It is simply a rental payment on some property.

I am on Turbotax 2025, Deluxe Edition on a Mac and it is up to date with the latest downloads.  I am thinking of deleting this tax file and starting over from scratch but I am not sure what, if anything this will change.  Any ideas?

[KrisD15 · Accepted solution]

if you are using TurboTax Desktop, check the Schedule E worksheet to see if there is a highlighted error. 

You may also need to enter/adjust the rental profile.

Since you say that this is RENT and not Royalty, be sure to select "Rental property" on the "Is This a Rental Property or Royalty" screen. (Do not select Royalty property or payment)

Select "Land (raw land rented to others)" for the "What Type of Rental is This?" screen since you are not reporting any depreciation. 

Continue through that interview 

[flossy21]

What you suggest worked but it doesn't "feel" right.  Turbotax's language on the rental path is geared more toward surface real estate while this lease payment was a one-time up front payment to originate a mineral rights lease.  The 1099MISC only has the payment in box 1 as a "rent" item so I guess if it works then I should go with it.