I use Etrade as a brokerage. When I accessed Etrade to get 2020 tax year info automatically in Turbo Tax Premier 2020, it correctly picked up the fact that I had purchased and then sold PermRock Royalty Trust during 2020. But when doing a Smart Check there were about 10 questions that Turbo Tax needed answers to about PermRock Royalty Trust. It was treating it as a sole proprietorship and myself as the owner and was asking questions that do not make sense to me as just a buyer and seller of PRT.
What do I need to do to make Turbo Tax happy in this regards ?
you owned an interest in a royalty trust. it's always a grantor trust so you are treated as the owner of your interest. it makes monthly distributions. the broker may be reporting the info which gets entered on schedule E page 1 as royalty type income. you'll likely have gross royalties, severance taxes administrative fees and then possibly depletion. some brokers will defer reporting to the trust which will send you a tax package.
i have provided a link to its 2020 tax package. read carefully
Thanks Mike, I'll check out the link you referenced. I appreciate the fast response.
Bob
Turbo tax is interpreting it as a Schedule C Sole Proprietorship. Then the questions it asks, like business name, street address, whether I've paid out payments that would require sending 1099s, etc. What am I supposed to answer these questions with ? My personal home address ? etc ?