1099-MISC Royalty income problem in TT

[chimeramouse]

I am having a problem with Turbo Tax with a 1099-MISC Royalty income.

This was separate income from my normal W2. I even made an estimated tax payment at the time because taxes were not withheld from this income.

I received some income through a 1099-MISC, box Royalty income. This was a research program that paid for as an invention.  My only two options in TT is either as real estate property or as a business that I own. This is really neither. Either of these options are causing problems with me getting my taxes completed. This was simply income that I am trying to report. Any suggestions on how to resolve this would be greatly appreciated.

The real estate property section causes problems because it keeps trying to get me to enter an address and then days occupied, or rented, etc.

The business section is taking me through all the profit/loss as if this was a self employment business.

Any suggestions would be greatly appreciated.

[ColeenD3]

A royalty property is a right to income from natural resources like oil, gas, or mineral properties.

This might also include royalty payments you'd get from copyrights and patents, but only if you are not in the business of creating such works. An example of this might be a patent you purchased in order to collect fees by licensing the patent.

If you regularly create intellectual property such as a copyright or patent (for example, you're a professional author), you should report income from this self-created property as Business Income, not as investment royalties.

You must decide which of these descriptions is the most like your invention. You enter Schedule E royalties under Royalty, not Rental.

[chimeramouse]

So this was paid to me as part of patent or copyright type activity.

I don't regularly create these. Honestly, I don't actually own the patent or copyright. The institution retains ownership and rights to it. I a was participant and was paid this royalty on the basis my percentage of participation.

So I need to file this as business income, instead of the Shedule E? 

[ColeenD3 · Accepted solution]

No, report it on Schedule E. You would use Schedule C if you regularly create intellectual property.

[chimeramouse]

Thank you for your help.

TT was a little glitchy about this. The Step By Step answers were not helping me with this.

I finally got it worked out. So relieved to get this done.