Mineral Rights

[Silverseal99]

Mom lives in Florida but inherited mineral rights in Oklahoma and received a 1099-MISC for royalties for natural gas. 

1.  Does she need to file a state income tax form for Oklahoma?

2.  TurboTax is setting up a Sch E as though she owned a rental property and wants the address.  What entry is used for mineral rights only, no address?

Thanks.

[Vanessa A]

1.  Does she need to file a state income tax form for Oklahoma?  Yes, she will need to file an OK state nonresident return, if she received more than $1,000, as this would be considered OK source income.

2.  TurboTax is setting up a Sch E as though she owned a rental property and wants the address.  What entry is used for mineral rights only, no address?  Schedule E is for investment property/income, it should not be going to rental property.  It should be considered royalty income in box 2 of the 1099-Misc.  You can enter whatever address info you have such as the street or town. You do not need a specific street address, you can enter just the name of the nearest road. 

Mineral Rights

[Silverseal99]

Vanessa, thanks for your prompt and useful response!  I'll file the non-resident OK return and use the Section Road designation on the Fed--that ought to confuse them Yankee Boys in D.C.!  😉