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Joint ownership of patent after divorce

My ex and I jointly own a patent and we each get paid half of the royalty.  I'm filing Single.  Why does TurboTax call it an error when I select Owned jointly on the Schedule E Worksheet?  Doesn't seem to make a difference either way to the bottom line but technically shouldn't it be selected to indicate why I'm only claiming part of the income?

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Joint ownership of patent after divorce

Along with Unchecking the joint option I would also keep some relevant documentation in the absence of a 1099 or K1, in case I get questioned by the IRS on such reporting, if I were you, off course 😊

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5 Replies
Anonymous
Not applicable

Joint ownership of patent after divorce

a more important question is do you get a 1099 only for your 50%?  

 

 

 

after divorce i would not answer joint ownership.    that's meant for when filing a joint return. 

Joint ownership of patent after divorce

Thanks @Anonymous . No 1099...yet. I'll uncheck the box.

Joint ownership of patent after divorce

Along with Unchecking the joint option I would also keep some relevant documentation in the absence of a 1099 or K1, in case I get questioned by the IRS on such reporting, if I were you, off course 😊

Joint ownership of patent after divorce

@Scorpion1 Thanks, yes. Statements from licensee and divorce agreement.  

JohnB5677
Expert Alumni

Joint ownership of patent after divorce

I also suggest you retain copies of checks and deposits.

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