1099-NEC entry for lease payments

[Leadball44]

I received a 1099-NEC for a lease payment on a piece of property that I have an undivided interest in.  This was a purely passive activity for me and normally I would expect this sort of thing to map into schedule E.  However, I am having a hard time figuring how to do this in the Turbo Tax desktop interface.  1099-NEC entry classification does not give a suitable/accurate choice (self employment, farm income, hobby, lawsuit, Medicaid waiver, Income that should have been on W2. All don't apply).  This is not self-employment nor a hobby.  This is lease income on raw land to a company looking to potentially develop it for minerals.  We do not actively participate in a business to do this and provide no services to the lessee except legal access to the property.  Maybe the issuer of the 1099 made a mistake, but how do I enter it correctly in the TurboTax interface?

[MaryK4]

Form 1099-NEC is for non-employee compensation (services). Passive lease bonuses and rents should be on Form 1099-MISC, Box 1.  You can report as Rental/Royalty income.  This method places the income directly onto Schedule E as passive income. 

In TurboTax:

1. Go to the Federal Taxes tab and select Wages & Income.
2. Find the section for Rentals and Royalties (under Rental Properties and Royalties (Sch E)) and click Start/Update.
3. Add a new property and describe it as Land or Royalty (specifically "Oil & Gas" if for minerals).
4. When prompted for income, do not select that you received a 1099-NEC. Instead, enter the amount as Rent Received or Cash/Other Income.