Partnership Oil Royalties entries

[tdgrimmy]

I'm using Turbo Tax Business to do partnership taxes and need to know where to enter the 1099 Misc info received from the oil companies for 'Other Deductions' and 'Taxes' 

Thank You

[AliciaP1]

The 1099-MISC is used to report income, in this case royalties, to your business.  You may have had taxes withheld in either box 4 or 8 and if so, these amounts would go under "Taxes and Licenses" on your 1065.  There would not normally be any other lines that would be deductions to the business.

[tdgrimmy]

There are no entries in any of the boxes of the 1099 except for Box 2 (Royalties) and Box 17 (State Income).  Both of these are the same amount - $1,418.95     At the top of the form is  'Other deductions = $ 299.84'  'Taxes = $90.46' and 'Net = $1,035.00"  

[AliciaP1]

If the amount you received was the $1,035 then you should enter the total from box 2 as income and the "Taxes" shown under "Taxes and Licenses" in your deductions for your 1065.  The "Other Deductions" should be entered under "All Other Deductions" and list "Other Deductions" as the Description.

If you received the $1,418.95, then you will list that as your Royalty income and disregard the notations at the top of the form.