Royalty income

Forum|Forum|4 years ago
February 24, 2022
2 replies
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I've seen this before but it still does not answer my problem. I have some gas royalties and it does direct me to schedule E but I keep getting errors when I try to complete my taxes. I put my address on the location line and that it is a single family dwelling. It then asks me all kinds of questions as if it were rental. ie: How many days rented and How many days for personal use. How do I get past this? Then it does not like the amount I entered from the 1099-Misc. Can you please help?

JohnB5677

Level 15

If you have Royalties, you should not have an entry in box 1 (Rents) of your 1099-MISC. The entry should be in box 2 (Royalties). If you make that adjustment the rental questions should stop.

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jph133Author

Level 2

I started the form over. I still have an error. Is this activity a qualified trade or business? I answered no and it loops again.

PatriciaV

Level 15

It depends. If you own a working interest in an oil & gas property, the income would be eligible for QBI. However, most royalty properties are held for investment, which is not eligible for QBI.

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jph133Author

Level 2

I finally got it completed by trial and error. I guess I clicked enough buttons and it finally accepted it. I will say that I did not get very good advice from Turbotax to get it completed. You really needed to be more specific on what fields needed to be filled in for it to complete.