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Level 1
posted Mar 9, 2024 11:51:06 AM

Mineral Rights

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.

0 2 1432
2 Replies
Expert Alumni
Mar 9, 2024 1:14:29 PM

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

Level 1
Mar 12, 2024 6:26:45 AM

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.!  😉